The National Grain and Feed Association is pushing lawmakers to maintain the Commodities Futures Trading Commission as an independent regulator, citing its critical role in overseeing agricultural derivatives markets and ensuring transparent price discovery for farmers and processors.
In testimony submitted to the House Agriculture Committee, NGFA President and CEO Mike Seyfert emphasized that well-regulated futures markets are essential for managing risk across the agricultural supply chain. "The CFTC's oversight is foundational to market integrity and to the ability of commercial users to hedge effectively," Seyfert said.
NGFA outlined three key priorities for CFTC reauthorization. NGFA opposes expanding agricultural futures trading to 24/7 operations, warning that round-the-clock markets would reduce liquidity, widen bid-ask spreads, and create manipulation risks during thinly traded periods. The group also noted that agricultural cash markets don't operate around the clock, creating dangerous misalignment for commercial hedgers.
NGFA also stressed the importance of maintaining the traditional intermediated trading system through Futures Commission Merchants, which manage customer funds and ensure proper margining. The Association further called for improvements to the Commitments of Traders report, including reducing publication delays and increasing reporting frequency to enhance market transparency.
