Groups say prohibiting hedge exemptions would harm futures market

Process ensures convergence of futures and cash prices.

The American Soybean Assn., along with the National Corn Growers Assn., recently sent a letter to Commodity Futures Trading Commission secretary Christopher Kirkpatrick expressing opposition to a proposal that would prohibit hedge exemptions for spread transactions during the last five days of trading of a futures contract, when convergence is expected to occur.

“One important element of risk management, price discovery and hedging is predictable convergence between the cash and fu

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