(House receded and concurred in the Senate amendment with an amendment) Futures Trading Act of 1986 - Title I: Futures Trading - Amends the Commodity Exchange Act to provide that the prohibition against fraud-related practices in connection with futures contracts shall apply to all such contracts whether executed on a contract market or not. Excludes foreign boards of trade, exchanges, markets, or clearinghouses from specified fraudulent practices provisions. Terminates the pilot status of the options trading program within 90 days of enactment of this Act (thus making it permanent). Authorizes the Commodity Futures Trading Commission (Commission) to serve subpoenas on persons outside the United States. Authorizes the ex parte appointment of temporary receivers to administer the provisions of any other ex parte restraining order and to perform other related duties. Requires that for an investment transaction by a Commissioner or employee of the Commission to be a prohibited transaction, it must have: (1) involved the use of nonpublic information; (2) been prohibited by the Commission; or (3) been effected by any Commission-regulated instrument. Excludes Commission-exempted transactions not contrary to the public interest from such prohibition. Authorizes appropriations through FY 1989. Requires a registered futures association (association) that takes a disciplinary action against a member or person associated with a member to provide such person and the Commission with notice of the action. Makes the automatic stay provisions inapplicable to an association disciplinary action. Requires the Commission to establish procedures for expedited consideration and determination of stay questions. Provides that the Commission shall review only final disciplinary actions taken by an association. Repeals the 30-day Commission approval period for proposed association rules changes. Prohibits all leverage transactions except those involving silver, gold, and platinum which are in compliance with Commission orders or regulations, including terms designed to ensure the financial solvency of the transaction or to prevent manipulation or fraud. Requires the Commission to provide notice and opportunity for a hearing before promulgating any such order or regulation. Requires the Commission: (1) with the assistance of an association registered under this Act, to conduct a survey concerning persons interested in engaging in the leverage business; and (2) to report to the Congress within two years. Prohibits the entry of new leverage firms into the business until the completion of such survey and report. Requires the Government Accounting Office (GAO) to: (1) conduct a study of cattle futures trading; and (2) file a preliminary report with the appropriate congressional committees by January 15, 1987, and a final report within one year of the date of enactment of this Act. Title II: Miscellaneous Provisions - Amends the Agricultural Act of 1949 to authorize the Secretary of Agriculture, regarding the 1989 and 1990 extra long staple cotton crops, to require compliance with the terms and conditions of the extra long staple cotton program as a condition of eligibility for benefits under other commodity programs. Prohibits such requirement for the 1987 and 1988 extra long staple cotton crops. Amends the Soil Conservation and Domestic Allotment Act to permit the continuation of one local agricultural stabilization and conservation administrative area in those counties that had less than three such areas as of December 23, 1985. Prohibits peanut marketing pools by type except for Valencia peanuts produced in New Mexico. Directs the Secretary to make 1986 wheat deficiency payments not later than the end of the fifth month of the marketing year. Authorizes alfalfa and other multiyear grasses and legumes, as approved by the Secretary, to be included as agricultural commodities for purposes of the highly erodible land and conservation reserve program. Requires GAO to: (1) conduct a study of the marketing practices of Farmers Home Administration borrowers; and (2) report to the appropriate congressional committees within one year. Authorizes advanced marketing training for farmers and ranchers. Title III: Grain Quality Improvement - Grain Quality Improvement Act of 1986 - Amends the United States Grain Standards Act to state that: (1) it is U.S. policy to provide quality grain to domestic and foreign buyers; (2) the primary objective of the official United States Standards for Grain is to certify grain quality as accurately as possible; and (3) U.S. grain standards shall provide the framework necessary for the markets to establish quality improvement incentives. Prohibits, as of May 1, 1987, the recombination of dockage or foreign material with any grain marketed in or exported from the United States. Stipulates that such prohibitions shall not be construed to bar: (1) the treatment of grain to destroy or prevent injurious fungi and insects; (2) and marketing of dockage or foreign material removed from grain which is marketed separately and uncombined with whole grain, or as part of a processed food for livestock, poultry, or fish; (3) the blending of similar grains to adjust mixture quality; (4) the recombination of broken corn or kernels with grain of the same type; (5) effective for the period ending December 31, 1987, the recombination of dockage or foreign material (except dust) removed at an export loading facility from grain to be shipped as a cargo under one export inspection certificate; and (6) the addition of identification material. Authorizes the Secetary to exempt from such prohibitions the last handling of grain in a final domestic sale and shipment when in the public interest. Permits the blending of vegetable oils with grain that is in commercial channels for the purpose of suppressing grain dust. Directs the Administrator of the Federal Grain Inspection service to issue a final rulemaking within six months regarding insect infestation of grain. Directs the Secretary: (1) in consultation with farmers and members of the grain industry, to study the feasibility of adjusting the Commodity Credit Corporation grain premium and discount schedules in order to encourage the delivery, storage, and export of high quality grain; and (2) report to the appropriate congressional committees within 180 days. Directs the Administrator to: (1) publish and seek public comment on H.R. 5354 (Optimal Grain Grading Act); and (2) report to the Congress by May 1, 1987. Provides for a Federal Grain Inspection Service and Agricultural Research Service study of the need for an availability of uniform end-use value tests for grain including an ongoing review of such tests that are of economic value to buyers. Directs the Administrator: (1) to the extent practicable, to revise official grain standards accordingly; and (2) to report to the Congress within one year, and annually thereafter. Title IV: Federal Meat Inspection - Processed Products Inspection Improvement Act of 1986 - Amends the Federal Meat Inspection Act to redescribe the manner and frequency of inspection of meat food products to include the requirement that the Secretary of Agriculture take into account for each establishment: (1) the nature and frequency of processing operations; (2) the adequacy and reliability of processing controls and sanitary procedures; and (3) the history of inspection compliance. Changes the requirement that condemned meat food products be destroyed for "food purposes," to a requirement that they be destroyed for "human food purposes." Authorizes a court, upon the Secretary's request, to issue a temporary order forbidding operational control of a facility subject to Federal inspection by any person convicted of a felony involving intentional adulteration of food, extortion, or bribery, if control by such person would pose a threat to public health or safety or a clear likelihood of significant economic harm to consumers. Authorizes the Secretary to commence civil actions for inspection suspensions in cases of: (1) repeated offenses; and (2) assaults or threats of assault on inspectors. Provides for judicial review of such suspension in courts of appeal. Requires the Secretary to provide an alleged violator with notice before reporting the case for criminal prosecution. Repeals this Act after six years. Expresses the sense of the Congress that the Secretary should: (1) establish a residue detection program for livestock; and (2) evaluate the feasibility of developing a livestock tracing program. Requires an annual report to the Congress, beginning not later than one year after enactment of this Act, regarding activities provided for by this Act. Directs the Congress to evaluate the operation and effects of this Act not later than six years after its enactment.