It is harder to hedge risk today than it was 10 years ago.

So you would agree that the basis, the price gap, is larger than has been historically the case, is that correct?

I think that we have the clear authority to do it as it relates to the two no-action letters.

Hedging in the futures markets only works to the extent that the price of the commodity in the cash market and the price of the commodity in the futures market converge as a futures contract expires.

It is a predominant factor, yes.

Our report, which was issued by myself and Senator Coburn last month, concludes that the huge number of wheat futures contracts being purchased by derivative dealers selling commodity index instruments have, in the aggregate, constituted…

Do you believe that it was a big factor prior to 2004?

Should you decide to impose the standard position limits, what is your response to that argument?

I am not sure I understand your explanation as to why you disagree that the storage cost shift cannot explain this increase in the gap between futures and cash prices.

I believe that the data and analysis that they have presented make another compelling case that excessive speculation has caused our commodity markets to become unmoored from those who actually make a living using the underlying…

Well, thank you all very much for your testimony.

The continued lack of convergence in important segments of the wheat market has significantly diminished the usefulness of the wheat futures market for commercial hedgers.

The problem is that there is an embedded option inside of the futures contract for below-market cost of storage.

All right. Again, I would say that in their prepared statement, prior to being approved by CME, they say all index traders were required to receive prior CFTC approval.

But you have the authority, should you decide to issue that rule?

Our investigation did, however, reveal that an abundance of long open interest helped to inflate futures prices.

So my point is that the working of these markets have real-life consequences.

Invasive species have done severe damage to our Great Lakes as well as to the land mass of Michigan.

The zebra mussels started in the Great Lakes. Thirty States are now infested with zebra mussels.

Zebra mussels can significantly change the nature of the lake bottom, affecting fish habitat and spawning.

About 180 non-native organisms have been identified already in the Great Lakes.

I agree with everything that he says, for what that is worth.

I have seen the consequences of allowing aquatic invasive species to enter our waters.

I do not think we can say that has turned the corner, but it is something that I think we have a great interest in encouraging what we would say is the correct analysis of their national security interests.

It is wrong in terms of American security for us to be attacked by Pakistani leaders for doing something which they quite obviously know we are going to do and support.