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Commodity Marketing Practices in an Era of International Turmoil

Published: May 25, 1977. Publicly Released: May 25, 1977.
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Highlights

The Soviet grain purchases over the past 4 years have produced the realization that the government's monitoring of agricultural exports is seriously wanting. U.S. policy does not adequately consider surplus, tight supply, and/or shortage situations. The government should intervene in the market when necessary to insure adequate supplies of commodities at fair prices and to minimize disruptions resulting from extreme market conditions. There are serious inadequacies in the U.S. agricultural reporting system, recent export policy, and recent policy implementation. A food reserve system deserves serious attention as part of a package to meet U.S. food policy objectives. U.S. surpluses have become an important economic commodity. The Commodity Futures Trading Commission should: improve trade practice investigations; complete complaint investigations promptly; work with other federal agencies to ensure that adequate cash-price information is provided for all commodities traded in the futures market; have a strong auditing role; and implement a formal research program. Economic stockpiling and price stabilization agreements are now serious responses to the unsettled international trading environment. The cartelizing of world trade is gaining momentum, and it is a situation that will require continuing attention.

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