“Exciting times lie ahead for the Johannesburg Stock Exchange (JSE) commodity market as we are embarking on quite a few new livestock products,” says Chris Sturgess, director of the JSE commodity market. A brand-new lamb carcass futures contract was launched this week.
This move will be followed by the launch of a wool futures contract on 5 June. Both contracts will be cash-settled, using information from the spot markets. “These contracts will allow role-players in the sheep farming industry to hedge price risk amid erratic lamb prices. We are looking forward to engage with role-players in this industry.”
A beef carcass futures contract was also launched some time ago. This contract’s impact will soon be further supplemented with a feeder calf futures contract.
Regarding other agricultural commodity products, a soya been crush futures contract was recently launched. This will allow soya been processors to hedge price risks in trading the final product.
“Another exciting move for us is that we moved over to fully electronic silo receipts from the beginning of May. This means that the JSE commodities market is now a totally dematerialised market environment. This is another good sign that South Africa and the South African grain market are becoming more efficient and adopting new technology,” commented Sturgess. – Marike Brits, Farmbiz