The CFTC, Commodity Futures Trading Commission published on June 17, 2004 in the Federal register that the CBOT, KCBOT and the MGE have petitioned the Federal Government in separate filings to repeal or amend the speculative position limits on the respective Boards of Trade. The CFTC is soliciting your comments by August 16, 2004. The CBT changes are to increase the 1 month limit from 5,500 contracts at one time to 10,000 on Corn with a total limit of 9,000 on all months to 17,000 combined on all months. Soybeans would go from a 1 month figure of 3,500 to 6,500 and totals from 5,500 to 10,000 and CBT Wheat would go from a 1 month figure of 3,000 to 4,500 and all months figures from 4,000 to 5,500 contracts at one time.

To see the proposed changes click on this link: http://www.cftc.gov/foia/fedreg04/foi040617a.htm

Comments should be submitted to Jean A. Webb, Secretary,
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st
Street, NW., Washington, DC 20581. Comments also may be sent by
facsimile to (202) 418-5521, or by electronic mail to
secretary@cftc.gov. Reference should be made to ` Petitions for Repeal
or Amendment of Federal Speculative Position Limits.'' Comments may
also be submitted by connecting to the Federal eRulemaking Portal at

http://comments.regulations.gov/EXTERNAL/Comments.cfm?DocketID=04-13678&CFID=6096&CFTOKEN=11920663

This is your chance to let the government know what you think of the funds trading commodities on paper and the way it affects your cash price. Sometimes funds present good opportunities by pushing prices higher than fundamentals dictate but often they cause lower prices than fundamentals dictate by selling into a market on top of the normal commercial short position selling. This tends to add momentum to a declining market as end users prefer cheaper prices and thus do not step in the way of a declining market because it makes it easier for them to maintain a larger volume of sales. A low price, by excessive fund selling, enhances the likelihood of the U.S. government having to make payments for LDP's, MLG's and/or CCP, which occur during times of low prices. Funds already have a heavy impact on market trends and to increase their stature by allowing them to hold even more contracts does not seem to benefit anyone other than the CBOT, KCBOT or the MGE which thrive on the trading volume funds provide.

Market Data, Inc. would like to see this request denied as it may enhance the detachment of U.S. and world fundamentals to the grain markets by greatly expanding the already large influence funds have. The only ones sure to gain out of this would be the boards of trade through the potential increased volume the funds may provide. A large potential loser of this may be the U.S. government and the U.S. taxpayers through the lower prices that may occur which would enhance the chances of LDP, MLG or CCP payments.

To see their current limits click on the link at the below:
http://www.cftc.gov/opa/backgrounder/opaspeclmts.htm#speclmts

E-mail us your comments or thoughts at http://www.marketdatainc.com/.