The Johannesburg Stock Exchange (JSE) proudly marks a significant milestone as it celebrates the 30th anniversary of its commodities market — a cornerstone of South Africa’s financial ecosystem and a vital engine of the country’s economic growth and development since 1994’s democratic elections.

 

Published 30 Oct 2025
Posted by NdivhuwoM

Johannesburg, 30 October 2025: The JSE Commodity Derivatives Market (CDM) was officially launched in 1995, following the dawn of democracy and the freeing up of the agricultural markets with no control boards to set agricultural prices. Since its inception, the CDM has evolved into a dynamic platform that connects producers, traders, and investors across the globe, fostering transparency, price discovery, and resilience in the agricultural and financial sectors. 

 

Valdene Reddy, Director: Capital Markets at the JSE, said: “The journey reflects a dynamic blend of financial innovation, regulatory foresight, market-driven adaptation and collaboration among South Africa’s wider agricultural communities, grain storage operators, the financial services sector and South African Banks. It is the strong relationships that have evolved over the past 30 years that has allowed the South African listed agricultural market to become a globally recognized and respected platform.”  

“An efficient, well-functioning commodity market is an important part of a free market. The option of choice that a commodity derivative market provides is no insignificant thing. It was a privilege for me to have played a small part in the establishment of the market in South Africa,” said Rod Gravelet-Blondin, founder and former Head of the Commodity Derivatives Market at the JSE. 

Today, the exchange has 15 registered storage operators with over 300 silos registered, which support physical deliveries. 

Initially offering contracts for chilled beef carcass and potatoes, followed by a white and yellow maize contract, the JSE today continues to list the only white maize derivatives contract globally and it remains its flagship product. The JSE CDM offers a wide array of derivative instruments, including: 

  • Agricultural Futures & Options: White/yellow maize, wheat, sunflower seeds, soybeans
  • Foreign-Referenced Contracts: Crude oil, gold and other international commodities via CME Group licensing
  • Silo Receipts: Facilitate physical delivery and serve as financing instruments
  • Spot Basis Platform: Enables securing physical commodities at a desired location

Key Achievements 

Over the past three decades, the JSE’s commodities market has played a pivotal role in advancing South Africa’s agricultural and financial sectors. Key milestones include: 

  • Establishment of a transparent price discovery mechanism for key agricultural commodities, enhancing market efficiency and investor confidence.
  • Introduction of innovative derivatives products, enabling effective risk management for producers, traders, and institutional investors.
  • Expansion of market participation, with a growing base of local and international stakeholders contributing to increased liquidity and depth.
  • Implementation of an automated trading system and clearing infrastructure, aligning the South African agriculture market to the globe.
  • Support for food security and economic resilience, by providing reliable hedging tools for the agricultural value chain. 

This anniversary not only commemorates three decades of innovation and impact but also sets the stage for a bold new chapter in the future of commodities trading in Africa. 

Looking Ahead 

As the JSE’s commodities market enters its fourth decade, the Exchange is focused on deepening its impact through strategic innovation and regional integration. Future initiatives include: 

  • Expanding product offerings to include new agricultural and energy-linked derivatives that reflect evolving market needs.
  • Leveraging digital platforms and data analytics to enhance market transparency, accessibility, and operational efficiency.
  • Strengthening regional partnerships to position the JSE as a central hub for commodities trading across the African continent.
  • Promoting sustainability and ESG-aligned instruments, supporting the transition to a climate-resilient economy
  • Enhancing financial inclusion by enabling broader participation from emerging farmers and small-scale producers through targeted education and access initiatives. 

These forward-looking strategies underscore the JSE’s commitment to building a resilient, inclusive, and globally competitive commodities market that continues to serve as a catalyst for economic development in South Africa and beyond. 

Reddy concluded:“This milestone is a testament to the JSE’s role in shaping Africa’s financial markets. As we look ahead, we remain focused on driving digital transformation, expanding access, and reinforcing our position as a trusted platform for commodities trading on the continent. The journey is far from over, and we are looking forward to the next 30 years!” 

ENDS 

 

ABOUT THE JSE 

The Johannesburg Stock Exchange (JSE) has a well-established history of operating as a marketplace for trading financial products. It is a pioneering, globally connected exchange group that enables inclusive economic growth through trusted, world-class, socially responsible products, and services for the investor of the future. It offers secure and efficient primary and secondary capital markets across a diverse range of securities, spanning equities, derivatives, and debt markets. It prides itself on being the market of choice for local and international investors looking to gain exposure to leading capital markets on the African continent. 

The JSE is currently ranked in the Top 20 largest stock exchanges in the world by market capitalisation, and is the largest stock exchange in Africa, having been in operation for 137 years. As a leading global exchange, the JSE cocreates unlocks value & makes real connections happen. www.jse.co.za  

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