The National Grain & Feed Association (NGFA) has expressed concern in response to the Commodity Futures Trade Commission’s (CFTC) proposed changes to regulations that define what is a ‘bona fide’ hedging position and would limit speculative positions for users of agricultural futures markets. The NGFA states that a number of common hedging transactions employed by those in the grain, feed, and processing sectors such as locking in futures spreads and delayed price commitments are not used as a speculative or investment tool but rather to manage business risk. Changing what would be considered a ‘bon fide’ hedging position would reduce the ability to manage risk and would force grain and oilseed producers to lower bids to farmers. To read more about the regulatory changes being proposed by the CFTC and the response of the NGFA:
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