top of page

UA News and the Unconventional Ag event series are no longer being offered. You can continue to stay updated on the global ag, agtech, food, and food tech sectors through our other publications and events: Global AgInvesting conference series, AgInvesting Weekly, Agtech Intel NewsWomen in Agribusiness Summit, and Women in Agribusiness Today.  We are grateful for your past support, and look forward to staying connected with you through our range of media platforms.

NEWS.png
Unconventional Ag

Kraft, Mondelez Charged with Manipulating Wheat Market

A civil enforcement complaint filed in an Illinois court by the Commodity Futures Trading Commission (CFTC) alleges that Kraft Foods and Mondelez International manipulated the wheat market, pushing down prices and gaining a $5.4 million profit for the two companies.

The complaint charges that in 2011 the two companies bought wheat futures that exceeded the CFTC’s position limits with no valid hedge exemption or need, and proceeded to then carryout numerous competitive trades.

“A market participant who is not happy with cash prices available to it may not resort to manipulative trading strategies in an attempt to artificially lower that price,” says Aitan Goelman, the CFTC’s enforcement director.

Court filings also indicate that in December 2011, Kraft Foods and Mondelez also held long positions on wheat that exceeded the permissible 600-contract speculative spot position limit for the month by as much as 2,110 contracts, and that the companies executed off-exchange futures transactions between two accounts that were not compliant with exchange rules for non-competitive off-exchange futures trades.

Since Kraft was spun off of Mondelez in October 2012, it would be Mondelez that would be responsible for all costs incurred through the case against the two companies and all possible penalties imposed. Mondelez has declined comment on the allegations.

NeverStop - 650x85.jpg
CPM Logo Image
LECO Ad Image
MOSOY-NovDecJan-1000 x825-02.png
UA News Subscribe Image

CONTRIBUTE

Contact Lynda Kiernan-Stone,

editor of Unconventional Ag News, to submit a story for consideration: 
lkiernan-stone@highquestgroup.com

bottom of page