Grain Journal - July/August 2008 - (Page 95) Zero Action on Commodities CONGRESS GOES HOME WITHOUT PASSING LEGISLATION ON SPECULATION Congress packed up its bags and went home for the August recess after failing to pass legislation intended to curb speculation on the commodity markets, including agricultural commodities. A bill that would have placed new limits on speculative trading failed to get a required two-thirds majority in the House on a 276-151 vote July 30. The two-thirds vote was needed to pass the bill under House rules that would prohibit amendments. The previous week in the Senate, sponsors of similar legislation failed to get the 60 votes needed to end debate on that measure. According to wire service reports, House Speaker Nancy Pelosi, D-CA, said debate on the measure is likely to continue after Congress reconvenes in September. The Commodity Markets Transparency and Accountability Act contained a number of provisions to increase transparency of the markets, particularly with regard to passivelymanaged long-only index funds, and would place limits on speculation under some circumstance and beef up the Commodity Futures Trading Commission staff to increase oversight and surveillance of the market. Energy Concerns Much of the debate occurred over energy concerns rather than agricultural commodities. Republicans objected to the bill, arguing that a better approach to reducing energy costs would be to open the outer continental shelf and other off-limits areas to energy exploration. A bill that would have done just that also failed to pass Congress before Response No. 951 the recess, although a compromise measure also was expected to come up for consideration in September. Ed Zdrojewski, editor J/A GJ 95 http://www.mccormickconstruction.com http://www.mccormickconstruction.com
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