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CFTC acts to shut out grain futures speculators

The US Commodity Futures Trading Commission (CFTC) has approved new rules designed to reduce distortions in the soft commodity futures markets caused by speculative activity.

Following complaints from the farming industry that speculative investment had caused a "disconnect" between cash and future prices for grains on the Chicago Board of Trade, the exchange, acting with CFTC approval, will limit "non-commercial" holdings of delivery instruments - receipts and shipping certificates - on several listed grains.

Dealers will have until the end of May to reduce holdings to

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