Below are the latest numbers on the current registrations with the National Futures Association (NFA).  A person or firm is required to register with the NFA in order to conduct business in the futures markets with the public. 

For those not familiar with the industry terms, an Introducing Broker is basically the term for commodity brokerage firms.  Associates are the personnel or brokers.  A Futures Commission Merchant is a clearing firm that executes trades.

Futures Commission Merchants:  106
Introducing Brokers:  1,362
Commodity Pool Operators:  1,015
Commodity Trading Advisors:  1,024
Exchanges:  8
Associates:  51,353

This commodity Ponzi scheme didn't become mainstream news, but it cost a major clearing firm a couple million dollars.  This was in the form of a fine for failure to supervise and not catch the fraud that was taking place right before their eyes. The clearing firm made nearly $1 million in commissions, but were they really responsible for catching this wrongdoing?

Cotton prices tumbled on Thursday as the USDA crop report estimated supplies of cotton to be at the highest level in history.  This will be the third season where supplies are greater than demand.  As you might expect, it was a limit down day for cotton futures prices as they fell 4 cents on the day.

U.S. officials are estimating cotton prices could fall to 65 cents.  December cotton futures closed at 79.37, which leaves more room to the downside.  It is amazing how things change in a year.  Cotton prices reached a record high last year at 2.27 a pound on fears we would run out of cotton.  Now, we are worried about too much cotton.  This is the circle of life in the world of commodities. 

Soybeans have dropped along with other commodities in the last week, but the market is in a very interesting point right now.  Soybeans are sitting on trendline support and this is an area where many traders would be looking to buy. 

Before you run to your local commodity broker and tell him you need to buy soybeans, there are a few more things you need to consider.  Soybeans typically make a high for the year around June.  The market usually doesn't make new highs after this timeframe. 

Soybeans also had a major run above $15, which is an extreme level.  The market also formed a technical reversal at the beginning of May.  In a runaway bull market in the grains during summers, you can expect several reversals.  However, one of them usually works out great - y0u just don't know which one. 

Those ares everal points to ponder, but the trade here is to buy at trendline support or wait for a confimation on a move higher from the trendline.  You want to stay long if the market holds the trendline support.  Or, you could take a short position if the market breaks trendline support and hope for a major top.