October 29, 2009

CFTC head not convinced of wheat convergence solution

By Christopher Doering

WASHINGTON, Oct 29 (Reuters) - The head of the top U.S. futures regulator said on Thursday he doesn't believe the world's largest exchange has figured out the root cause behind the lack of convergence in the Chicago wheat market.

Commercial grain companies say the lack of convergence -- in this case where a Chicago Board of Trade wheat contract and cash prices fail to come together, or converge, at expiration -- makes the wheat contract an ineffective hedging tool.

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Last Updated: February 25, 2011