Wednesday, September 2, 2009

To keep grain prices down, limit the market

David Fry can get mad - and rightfully so. Excellent analysis on the recent limitations imposed on funds. So this is the government plan to keep grain prices down?

The CFTC Is Needlessly Breaking Good Products -- Seeking Alpha:
"DBC (PowerShares DB Commodity Tracking Fund) and DBA (PowerShares DB Agricultural Fund) are in the news as the CFTC (Commodity Futures Trading Corporation) has revoked the position limit exemption for these funds. They have also intimidated the issuers of UNG (United States Natural Gas Fund) into not issuing more shares to meet demand, essentially breaking the issue as an effective product and needlessly costing investors a fortune. In the case of UNG, this is part of a government effort to squash speculation in energy markets, always a politically correct or populist thing to do."

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