The Australian Securities & Investments Commission (ASIC) has launched proceedings to sue a subsidiary of the Chinese subsidiary COFC International Australia and COFCO Resources SA.
The companies are alleged to have manipulated the wheat futures market in Australia a number of times in 2022 in an act referred to as 'marking the close'.
This act can affect contract prices to the benefit of the company and distort market prices and supply and demand.
Grain Producers Australia Southern Region Director Andrew Weidemann spoke to 3CS about the ASIC announcement and said it was a good sign for grain growers that ASIC was acting on their behalf.
"The takeaway is that at least ASIC is watching the processes that are occurring here," he said.
"It is a wakeup call for traders around their activities in the futures markets and gives growers confidence that someone is performing a watchdog role on their behalf."
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