Mondelez, Kraft To Pay $16M To Resolve Allegations Of Futures Market Manipulation
Jayson Derrick, 06 March 2020
Food giants Mondelez International Inc MDLZ 0.07% and Kraft Food Groups will pay $16 million to settle allegations they created unfair advantages in wheat futures, The Wall Street Journal reported.
The Mondelez, Kraft Settlement
Mondelez and Kraft were once part of a single corporate entity, and they and appear to be set on resolving a dispute with the Commodity Futures Trading Commission, the newspaper reported Thursday.
Kraft was accused of building a large position in wheat futures in 2015 when it had no intention of ever accepting physical delivery. Doing so would have driven down the spot-market price of wheat, which the food company would take advantage of for its business.
Kraft and Mondelez reached a 2019 settlement with the CFTC, but the companies cried foul when the regulatory body violated terms of the agreement by issuing public comments.
