Ferruzzi vs. CBOT: who is right? (corner on soybean market by Ferruzzi Finanziaria S.p.A. at Chicago Board of Trade)

Futures (Cedar Falls, Iowa), September, 1989 by Flory, Charles; Schap, Keith

Ferruzzi vs. CBOT: Who is right? Was the Chicago Board of Trade's (CBOT) emergency action to prevent an alleged squeeze of the soybean market in July the right thing to do?

If the indictments of 46 Chicago traders Aug. 2 hadn't diverted attention from this CBOT action (see "Trade Trends" section), it still would be the most hotly debated issue in the futures and options industry, wiht answers depending on whom is asked.

Focus of the dilemma is whether the grain trade branches of Ferruzzi Finanziaria S.p.A. were indeed trying to squeeze, or otherwise manipulate, the soybean market as the July contract neared expiration.

David H. Swanson, president of Central Soya Company Inc., a Ferruzzi subsidiary, has repeatedly denied Ferruzzi was trying to...

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