-A US court has rejected a proposal by the Commodity Futures Trading Commission that aimed to limit speculation in commodity markets.
The “position limits” rule was to take effect in two weeks. It would have capped holdings of futures and options for 28 commodities and their derivatives, from crude oil to corn and cocoa, expanding existing limits to contracts for any delivery month.

-Robert Wilkins, a US district judge in Washington, said on Friday the CFTC failed to heed instructions from Congress requiring it to determine that its rule was “necessary to diminish, eliminate or prevent” excessive speculation. In doing so, he agreed with arguments made by Wall Street groups seeking to overturn the proposal. The CFTC had argued that Congress simply instructed it to produce a rule, without first having to determine whether it was necessary.

-Bart Chilton, CFTC commissioner, said: “This is obviously tough news for those of us who believe there’s too much speculative concentration in commodity futures and swap markets.”

US court scraps CFTC position limits rule -