Louis Dreyfus Sued by Trader Over Cotton Futures Pricing - Bloomberg
"Three units of Louis Dreyfus Holdings BV of the Netherlands were sued by a trader who accused the company of manipulating the cotton-futures market."
"Cotton futures jumped to a record $2.197 a pound on March 7, 2011, after the worst drought in at least a century decimated crops in Texas, the biggest U.S. producer. Prices plunged 58 percent by the end of the year as demand tumbled in China, the world’s largest consumer. The fiber has fallen another 22 percent in 2012."
"At issue in the lawsuit were futures contracts expiring in May 2011 and July 2011. The suit alleged Louis Dreyfus manipulated the prices by taking deliveries of millions of pounds of cotton. In June 2011, the cotton market experienced a supply “squeeze,” with stockpiles plunging 73 percent in one day, according to consulting firm FCStone Fibers & Textiles."
For more information on this topic, please feel free to go to the following web page: The Commodity Futures Trading Commission (CFTC) Rewards for International Whistleblowers.