Comment Text:
United Farmers Coop in George, Iowa is not in favor of allowing the CME to change daily price limits on corn futures from the $.30 daily move to the proposed $.50 daily move. In too many cases outside funds who are not actually buying cash grains and using futures markets to hedge that risk of ownership can move markets up or down on weather, world event rumors, and outside factors to increase volatility. This distorts farmers ability to actually use the futures market for price discovery. A change would play right into the hands of these spec funds and the CME who like lots of volatility to either be long or short the market and thus generate revenues for themselves. As a grain handler looking to manage risk we will be subjected to huge borrowing positions from our lender to fund margin calls being generated by huge market swings. Many lenders are already having a hard time of funding large margins one day and taking it back the next. Eventually this could limit our ability to actually allow farmers to sell grain in deferred positions which is what the futures market was establised for in the first place. Please do not allow this to happen. There is already a vehicle in place that allows markets to increase their limits over a matter of days. Thank You...Irvin Clubine
