CFTC Reauthorization

Today, the House Ag Committee held a business meeting to markup H.R. 4895, to reauthorize the Commodity Futures Trading Commission (CFTC or Commission).  The Committee reported the bill favorably to the House by a voice vote after adopting a manager’s amendment that makes few changes to the underlying bill.  At this point, it appears that the bill may be considered on the House floor in the near future.  The Senate is in the process of drafting its own version of the legislation. 

Some noteworthy sections in the bill include:

  • Grants the Commission the authority to adopt rules, after notice and comment, to safeguard proprietary information it obtains or receives and subsequently may share. (Section 114)
  • For contracts listed on DCMs or SEFs that reference a digital commodity available on a cash market, the bill directs the Commission to adopt rules detailing the content and availability of trade and trader data and other information a DCM/SEF must be able to access from referenced cash markets and data sources. (Section 109)
  • Makes amendments to the administration of SEFs. (Section 111)
  • Directs the Commission to establish and maintain research, development, demonstration, and information programs that: (a) facilitate the Commission’s understanding of emerging technologies, (b) provide an environment where emerging technologies may be explored; and (c) identify areas where the Commission should adapt technological advancements. (Section 118)
  • Establishes an Office of the Chief Economist to serve as an economic advisor to the Commission and perform functions such as economic analysis, regulatory cost-benefit analysis, and research. (Section 106)
  • Exempts qualified charitable organizations from regulation as commodity pool operators. (Section 108)
  • Expands the Commission’s fraud and manipulation authority to activities outside the U.S. that have or would have a reasonably foreseeable substantial effect within the U.S. (Section 112)

More Advocacy Issues

On April 14, 2021, Memphis stakeholders wrote a letter to Chairman Oberman of the Surface Transportation Board expressing the need for assistance in resolving the current inland rail crisis affecting importers, exporters and motor carriers in the area. See the full letter below. Click Here

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On March 15, 2021, Mississippi State University published the expected PLC payments for the 2020 year. Please see the link below for more information. Click Here

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The link below provides an overview and key takeaways from the Senate Banking Committee hearing to consider Gary Gensler to be a Member of the U.S. Securities and Exchange Commission (SEC). Click Here

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The National Cotton Council provided a cotton specific summary of the Quality Loss Adjustment Program and examples. See below. Click Here

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Yesterday, the Senate Agriculture Committee held a hearing to consider the nomination of Tom Vilsack to be Secretary of Agriculture. Click below for details from the hearing. Click Here

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China Policy and Market Update

January 29th, 2021

In December, China imported 1,629,083 bales (354,691 MT) of cotton, representing an increase of 80.43% month-on-month (m/m), and an increase of 130.9% year-on-year (y/y). The total value was USD $588.82 million, representing an increase of 89.33% m/m, an increase of 117.21% y/y. In 2020, Chinese cotton imports totaled 9,912,346 bales (2,158,159 MT), an increase of […]

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