Comment Text:
I am responding the proposed 50 cent daily corn limit. MaxYield Cooperative hedges over 80 million bu of corn and 9 million bu of beans each year. We are a traditional hedger, we purchase corn from our farmer/members, hedge it on the CME (our ONLY choice at this time) and sell to end-users as they need it. Our cost of hedging has escalated rapidly since 2008. Our farmer/members are selling more grain ahead to take advantage of price rallies. Currently when there is a limit move, we are able to sell other CME future delivery months and then spread the trade to or desired month. A limit move doesn’t lock us or other participants out of the market. This new limit increase would seem to fly in the face of current sediment in the regulatory arena of clamping down on market speculation. Even the President is talking about it.
Feel free to call or respond if you want more information.
Harry Bormann
Grain Team Leader
MaxYield Cooperative
West Bend, Iowa 50597
515-887-7211
