CFTC convergence subcommittee to meet on July 15

WASHINGTON, July 14 (BestGrowthStock) -The U.S. Commodity Futures
Trading Commission said on Wednesday its subcommittee on convergence
will meet on July 15 to discuss recent developments in the wheat
markets.

The panel was formed in March 2009 in the wake of
complaints from millers and commercial grain companies that
wheat futures and cash prices were failing to come together, or
converge, at expiration — making the benchmark Chicago wheat
contract on the CME Group’s (CME.O: ) subsidiary the Chicago Board of
Trade, an ineffective hedging tool.

The CME is the world’s largest derivatives exchange and home of
the oldest and biggest U.S. wheat contract.

The panel, which includes industry and exchange representatives,
was tasked to identify the causes of poor cash-futures convergence
in certain agricultural commodity markets and advise the CFTC on
ways to improve it.

The subcommittee discussion comes ahead of an Aug. 5
meeting by the full CFTC agriculture advisory committee,
chaired by Commissioner Michael Dunn. The meeting is expected
to discuss wheat convergence, among other issues.
[ID:nN02231863]

The CME has said it will institute its much-debated variable
storage rate plan beginning on July 18, raising storage rates by 3
cents to 8 cents a bushel per month to help fix the convergence
problem. [ID:nN28261726]
(Editing by Marguerita Choy)

CFTC convergence subcommittee to meet on July 15