Comment Text:
Current convergence issues in the corn and soybean delivery markets should improve with the increase in premium charges that become effective in the fourth quarter 2019. However, if convergence is still an issue in 2020, then the CME should have in place a dynamic component that allows the premium charges in corn and soybeans to adjust similar to the VSR in the soft and hard red wheat markets. If the delivery market does not provide true price discovery between futures and cash, then more market participants will turn to block trading to meet their needs.
