08/11/06 GAO asked to look at CME cheese pricing

Three US Senators representing large dairy states are asking the GAO, the Government Accountability Office, to look into whether cheese trading on the Chicago Mercantile Exchange is susceptible to price manipulation. Wisconsin Senator Russ Feingold says farmers who attend his town hall meetings raised the issue. FEINGOLD "Years ago the Green Bay Exchange determined the price of cheese for most of the country and there were concerns about manipulation there and claims that Kraft had an undue influence there. Now some people are asking whether similar problems are occurring at the Chicago Mercantile Exchange. I'm not saying that there is manipulation but I think that its time that we examine it and look at it. Pennsylvania's Arlen Specter and New York's Hillary Clinton joined Feingold in asking for the GAO investigation. If problems are found are there actions that the government can take? FEINGOLD "Well we can legislate if there are serious problems. We can put pressure on the exchange if there's some problem but you know I don't want to prejudge it. It's not fair for me to prejudge it. Let's wait and see what the study shows." The senators also asked GAO what role, if any, federal agencies should play in over seeing the CME cheese market and they want to know if the Chicago exchange has considered improvements in its cheese market based on its own analysis or that done by outside parties. Today's Idaho Ag News Bill Scott