The U.S. Commodity Futures Trading Commission (CFTC) today issued an order simultaneously against Ceres Global Ag Corp..Case filed and settled on charges of attempted price manipulation of July 2016 and March 2017 oat futures contracts。

Under the order, Ceres' senior personnel are aware of and assist in the establishment of large long positions at or near the spot month speculation limit, hold these long positions until the delivery period, and deliver oats with the aim of raising the oat futures price of these contracts and obtaining higher quality oats at a lower delivery price.。

Order alleges Ceres attempted to manipulate July 2016 and March 2017 oat futures contracts。

In June 2016, a former official instructed the company's oat traders to flip the company's existing short position in the July 2016 oat futures contract and try to reach a long position of 600 contracts, or 3 million bushels, which is the exchange-mandated limit for speculative positions.。

In addition to establishing long futures positions, the former official instructed oat traders to buy back shipping certificates previously issued by the company to other market participants to avoid "leaking" information that Ceres plans to deliver when the contract expires.。In order to influence the price of the July 2016 oat futures contract, Ceres delivered 484 contracts and made offset trades for another 53 contracts。

The order also found that Ceres engaged in similar activities on the March 2017 oat futures contract, also intended to influence futures prices.。The company established a long position on the March 2017 oat futures contract, held a long position until delivery, and delivered 337 contracts and also made offset trades on another 224 contracts, although the company did not urgently need these oats。

The order requires Ceres to pay a $3 million civil penalty and to cease and desist from further violations of the Commodity Exchange Act (CEA).。The order also acknowledges that Ceres has taken significant remedial measures to ensure future compliance with the Commodity Exchange Act.。