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Group wants position limits monitored.

In filed comments to the Commodity Futures Trading Commission, R-CALF USA says it strongly supports the commission's proposed rule on Position Limits for Derivatives. R-CALF USA has recommended that position limits in the Live Cattle and Feeder Cattle futures markets be lowered quickly as speculator interests continue to dominate the cattle futures market. The group also has indirect interests in reform of the energy commodities and feed commodities, as R-CALF USA members are end-users of these futures market contracts as well.

According to R-CALF USA, the factors giving rise to manipulation concerns in the Live Cattle market also are becoming increasingly prevalent in the Feeder Cattle market as two of the largest meatpackers that are among the largest purchasers of Live Cattle also own the largest of feedlots, making them among the largest Feeder Cattle end-users/buyers in the United States.

R-CALF USA also has urged the CFTC to monitor its initial set position limits to determine if they function to attract or deter physical hedgers. R-CALF USA CEO Bill Bullard says, the integrity of the cattle futures market is dependent on the CFTC's vigilance in monitoring the meatpackers and the meatpackers' agents' practices and its aggressive enforcement of market rules.

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