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Issue #591

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Terminal Operators

Air Cargo Quarterly

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2014 Media Kit

BNSF’s Miller to serve on US Commodity Futures Trading Commission Subcommittee

By: | at 08:00 PM | Intermodal  

BNSF Railway Company (BNSF) announced that John Miller, assistant vice president, Agricultural Products Marketing, was selected by the US Commodity Futures Trading Commission (CFTC) to serve on the Subcommittee on Convergence in Agricultural Commodity Markets, a new subcommittee of the CFTC’s Agricultural Advisory Committee. The subcommittee will work to identify the causes of poor cash-futures convergence in select agricultural commodity markets and advise on actions to remedy the situation.

“I am honored to have been selected by the CFTC to serve on this subcommittee,” said Miller. “Rail transportation plays such an important role in the overall agricultural market by providing safe, cost-effective service to allow US agricultural products to be competitive in domestic and international markets.”

For the past few years, the agricultural industry has been increasingly concerned about the efficacy and predictability of cash and delivery month convergence.

“The price of a futures contract at its expiration date is sometimes higher or lower than the cash price at settlement. This is an important issue because futures contracts are hedging tools for farmers, grain elevators, commodity processors and anyone with a stake in future grain prices,” Miller said. “At BNSF, we believe in open, transparent, reliable grain markets, and price discrepancy creates uncertainties for buyers as well as farmers making planting decisions.”

The subcommittee will present a report with its findings and recommendations to the Agricultural Advisory Committee, which will consider the report and make recommendations to the CFTC as to what further actions warrant consideration.