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Report Foreword: Potatoes are among 22 commodities in which futures trading subject to regulation under the Commodity Exchange Act is currently conducted. The leading potato futures market is the New York Mercantile Exchange, on which all trading is in Maine-grown potatoes. In view of the widespread speculative activity and sharp price movements in the 1954-55 potato futures market, the Commodity Exchange Authority made intensive analysis of basic data on futures trading provided by its system of reports from brokers and traders, and conducted special investigations of large-scale trading operations, and an examination of certain trade practices. Other special work included a marketwide survey of the positions of all traders in potato futures, a study of futures-cash price relations, and interviews in Maine with growers, dealers, shippers, and others in the potato industry. This report brings together information and statistics on the 1954-5S potato futures market obtained primarily from the special analyses, investigations, and interviews. The increased trading in potato futures over the past few years has attracted a great deal of interest, particularly on the part of Maine growers, dealers, and others who are directly concerned with the effects of futures trading on the pricing and marketing of the commodity. The report is intended to provide information as to the use and general character of the potato futures market, with particular emphasis on the relationship between trading in futures and the marketing of potatoes. This information will be useful, it is hoped, in judging whether trading in potato futures is of value in connection with production, marketing, and extension of credit, and whether changes in trade practices are needed to prevent abuses and increase the usefulness of the market.

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