Onion future. Aug 30, 2023 · The Onion Futures Act of 1958 The onion futures case of Vincent Kosuga made the government pass the Onion Futures Act, despite traders’ protests. L. Aug 19, 2024 · Onion futures trading was banned in the United States on August 28, 1958, following a series of market manipulations that led to significant market disruption. The law effectively banned the trading of futures contracts on onions. The event has inspired numerous books and articles, and it remains a reference point for discussions of market manipulation. The prohibition was formalized through the Onion Futures Act, a piece of legislation specifically designed to eliminate the trading of onion futures. [2] In the US, onions are the only commodity that can not be traded as a futures contract due to 1958 Onion Futures Act. In 1955 two traders bought so many onions and futures they controlled 98% of the onions in Chicago. Despite backlash from commodity traders—and CME itself—the bill passed, and President Eisenhower signed it into law in 1958. But, Scott Irwin, the economist, he says it also made life harder for farmers and for you and me, the onion buying public. com/videoWhile other media outlets bring you news as it happens, only the Onion News Network has the power to bri PUBLIC LAW 85-840-AUG. The Onion Futures Act is a United States law banning the trading of futures contracts on onions as well as "motion picture box office receipts". Public outcry over his practices led to the passing of the Onion Futures Act, which banned the trading of futures contracts on onions. Apr 9, 2024 · The government became involved and, due to the efforts of a future president, outlawed the trading of this one commodity — the humble onion. Ford (R-Michigan) supported the Onion Futures Bill, which banned onion future trading. Nov 20, 2013 · Passed on August 28, 1958, the Onion Futures Act (7 U. [1] The law was the first (and only as of 2010) to ban the trading of futures contracts for a specific commodity. R. Why was this restriction not repealed along with other deregulation measures of 80s and 90s? Why was onion seen as different from other commodities? Feb 8, 2022 · US Representative Gerald R. Onions remain on the list of regulated commodities until 1974 and the Onion Futures Act remains in effect to this day. . Ford went onto serve as President of the United States in the 1970s. 85-839 prohibits the trading of onion futures on any board of trade in the United States. TIL - The Onion Futures Act is a US law banning futures contracts on onions. Jan 5, 2016 · Vincent Kosuga actions resulted in legislation which banned onions from futures trading, the only commodity with such a ban in the United States. theonion. Kosuga (January 17, 1915 – January 19, 2001) [1] was an American onion farmer and commodity trader best known for manipulating the onion futures market. For More Breaking News: http://www. Also, Pub. (Source: DBPedia) The law is the first and only law, as of 2010, to ban the trading of futures contracts for a specific commodity. August 28, 1958 – The Onion F u tu res Act bans futures trading in onions, but does not amend the Commodity Exchange Act. [1] In 1955, two onion traders, Sam Siegel and Vincent Kosuga, cornered the onion futures market on the Chicago Mercantile Exchange. Cornering the Market How Vince Kosuga’s manipulation of the onion market led to the 1958 Onion Futures Act, which still bans onion futures trading today, highlighting the dangers of market manipulation. The terms used in this Act shall have the same mean vict on They did this by buying up onions or getting contract for the future delivery of onions. The brought in the onion growers on the scheme, but double crossed them by starting to sell without telling the growers. Apr 6, 2012 · Because the Onions Future Act robbed the Mercantile Exchange of a robust market—and therefore, profit center—its leadership needed to expand the offerings in order to maintain a healthy business. In the outrage following the market crash, then-Congressman (and future President) Gerald Ford proposed the Onion Futures Act, which banned futures trading on onions in an attempt to prevent further manipulation. 376] es of any board of trade in the United States. [2] Violation of the law is considered a misdemeanor punishable by a fine of up to $5,000. As of May 2025, it remains in Oct 22, 2015 · The ban ensured that there would never be another onion corner. This article delves into the historical context of this ban, the reasons behind it Onions Onions present a unique case in that onions are the only agricultural product specifically excluded from the enumerated commodities list in current CEA section 1a(4). August 28, 1958 [H. 28, 1968 1013 Public Law 85-839 AN ACT To prohibit trading in onion futures on commodity exchanges. Nothing in the definition issued herein affects the prohibition on onion futures trading. C Chapter 1 § 13-1) banned the trading of futures contracts on onions in the United States. The Onion Futures Act With Kosuga’s exploitation of the onion market, the government responded on August 28, 1958, passing the Onion Futures Ac t. The Act states that: “ (a) no contract for the sale of onions for future delivery shall be made on or subject to the rules of any board of trade in the United States. The resulting regulatory actions led to the passing of the act on August 28, 1958. S. Jan 17, 2025 · The onion futures collapse became a cautionary tale taught in business schools, and the phrase "crying over onion futures" entered the financial lexicon. [3] History edit On June 18, 1956, the Vincent W. nodmtqonmngroegfyrycqvhagsppspcsnauaxecpegutkvafgpy