Comment Text:
National Farmers is a commodity marketing organization serving the nation’s dairy, grain and livestock producers. National Farmers participates in agricultural markets every business day including the futures markets for hogs, live cattle and feeder cattle. We are writing to oppose changes in rules that would alter speculative position limits in futures contracts, that we believe have the potential to:
1) Lower market liquidity
2) Increase the price volatility
Price discovery is extremely important, and we are concerned that an overall position limit could create unintended consequences that could negatively affect our producer/members and directly impact their livelihood.
In addition, we understand that markets need speculators. Otherwise, there is no one to accept the risk that our members—as hedgers—seek to lay off.
In summary, we request there be no change in CFTC rules regarding futures contracts and related derivatives as they pertain to hog, live cattle and feeder cattle contracts.
