en.wikipedia.org/wiki/Onion_Futures_Act
2 corrections found
Thus, onions were excluded from the definition of "commodity" in the Commodity Exchange Act.
This is incorrect: the 1958 Onion Futures Act banned onion futures, but it did not remove onions from the Commodity Exchange Act’s definition of "commodity." That removal happened later, in 1974.
Full reasoning
Official federal sources draw a clear distinction between the 1958 ban and the later change to the Commodity Exchange Act’s definition of commodity.
- The CFTC’s official history states that on August 28, 1958, the Onion Futures Act "bans futures trading in onions, but does not amend the Commodity Exchange Act." It adds that "Onions remain on the list of regulated commodities until 1974."
- The U.S. Code editorial notes for 7 U.S.C. § 2 say that Public Law 93-463 (1974) "struck out 'onions,'" from the statutory definition of commodity.
So the 1958 law prohibited onion futures trading, but onions were not excluded from the Commodity Exchange Act’s commodity definition at that time. That exclusion occurred in 1974, not 1958.
2 sources
- History of the CFTC | CFTC
August 28, 1958 - The Onion Futures Act bans futures trading in onions, but does not amend the Commodity Exchange Act. Onions remain on the list of regulated commodities until 1974.
- U.S.C. Title 7 - AGRICULTURE
Pub. L. 93–463, §§201, 202, struck out "onions," after "eggs," in definition of "commodity" ... Act July 26, 1955, extended "commodity" to onions.
This led to the emergence of new leadership who pioneered a different strategy, expanding the exchange's traded products to include futures contracts on pork bellies and frozen concentrate orange juice.
This overstates what the Chicago Mercantile Exchange added. Pork bellies became a CME product, but frozen concentrated orange juice futures traded in New York, not on the Chicago Mercantile Exchange.
Full reasoning
The sentence incorrectly groups frozen concentrate orange juice with products the Chicago Mercantile Exchange added.
Federal and exchange sources place orange-juice futures in New York, not at CME:
- The CFTC’s designated contract market product listings show "NYCE Frozen Concentrated Orange Juice" as the approved contract, while CME listings on the same page include products such as hogs, butter, milk, and pork bellies.
- ICE’s product history says "Frozen concentrated orange juice (FCOJ) futures have traded in New York since 1966, first on the New York Cotton Exchange, then on the successor New York Board of Trade."
So it is accurate to mention pork bellies as part of CME’s post-onion product evolution, but not frozen concentrated orange juice as a CME product in this context.
2 sources
- Industry Filings: Designated Contract Market Products | CFTC
NYCE Frozen Concentrated Orange Juice Future Approved 07/24/1968 Agriculture Other Foodstuff ... CME Hogs, Lean Future Approved 06/18/1968 ... CME Pork Bellies, Frozen Future Approved 05/05/1998.
- Frozen Concentrated Orange Juice
Frozen concentrated orange juice (FCOJ) futures have traded in New York since 1966, first on the New York Cotton Exchange, then on the successor New York Board of Trade.