Meeting Date:
Monday, April 21, 2014
CFTC Staff:
Stephen Sherrod
Harold Hild
Organization(s):
Delta Strategy Group
Louis Dreyfus
Noble
External Attendees:
Scott Parsons (Delta Stategy Group)
Joe Nicosia (Louis Dreyfus Commodities)
Crawford Tatum (Noble)
Salvatore Penna (Noble)
Additional Information:
Topic: Louis Dreyfus and Noble discussed cash market practices in the cotton market. Their view is that CFTC should recognize, as a bona fide hedging position, a calendar month spread comprised of long nearby futures and short deferred futures when a commercial merchant has entered into a cash market sale of cotton on call (an unfixed price sales contract), prior to the cash market counterparty fixing the cotton on call price (resulting in a fixed price sales contract).
