June 23, 1978
Page 18784
TRADING OF POTATO FUTURES
Mr. MUSKIE. Mr. President, last year Senator CHURCH introduced legislation to eliminate the trading of potato futures. Today I am joining as a cosponsor of that bill.
Many Maine farmers have for years said that futures trading has been subject to manipulation and has created a market which does not accurately reflect actual supply and demand.
Problems have occurred in past years. For example, there was manipulation of the price of May 1971 potato futures on the Chicago Mercantile Exchange. But in the years that followed, producer opposition to trading abated due to a more consistently favorable market. And suspicion of manipulation of the market fell off.
Then in May 1976, serious violations of the rules of the exchange occurred along with violations of the Commodity Exchange Act. Many of the worst suspicions of Maine farmers were confirmed, and the situation renewed interest in a ban on trading.
Equally discouraging has been the severe economic difficulties the farmers face as a result of extremely low prices.
Combined, these factors have persuaded the majority of farmers that futures trading does not serve their best interests, and other market systems ought to be considered.
They have stated their wish through the Maine Potato Council. The National Potato Council also supported abolition of futures trading.
Under these circumstances, I am pleased to support his legislation. This bill will provide a useful vehicle to examine the impact of futures trading on the market and will give those on both sides of the question an opportunity to present their views and discuss alternatives.