Grain Futures and Options
Grain Futures and Options are Derivatives Contracts that provide local market participants with a tool for hedging against agricultural price risk. The JSE currently offers Futures and Options on white maize, yellow maize, wheat, soya beans and sorghum. Contracts are priced and traded in rands per ton and can be physically settled should the futures position be held on until last trading day.
Who is this for?
Typically, this product is used by those with a vested interest in protecting themselves against adverse price movements in the physical agricultural commodities market. Hedgers may be commercial producers, consumers and millers. Producers can employ a short hedge to lock in a selling price and end-users can use a long hedge to secure a purchase price. Speculators hoping to make a profit on short-term movements in the Futures Contract price also make use of this product.
- Secure, affordable and flexible with a mini contract also available on most products
- Derivatives contracts enable institutions to fund producers who hedge their price risk. In so doing, sustainable production is encouraged
- Provides a platform for price discovery and efficient price risk management for the grains market in South and Southern Africa
- Transparent as trade takes place on an electronic platform
- Procurement of physical products are guaranteed by approved storage operators and payment is received within one business day of delivery
- All transactions are guaranteed through the derivatives clearing structure
- By nature, derivatives can be risky and should be not be tackled by novice investors
How to get it
To access this product, register as a client with an authorised JSE member firm , deposit the required initial margin and sell or buy according to your needs. You can close your position or go into physical delivery.