The South African Volatility Index (SAVI) for white maize is a forward-looking index that makes a daily prediction of market volatility in three months’ time. It enables maize producers, investors and other market participants to gauge volatility and sentiment relating to the local white maize market.
Who is this for?
The index is not a tradable product; it is a transparent indicator of market sentiment. Market commentators, economists, producers and users, traders and investors interested in identifying market patterns and offsetting price risk can use it as a useful reference tool.
- Users can monitor fear forecasts daily.
- Users can edge or gain exposure based on forward expectations.
- When referring to the index, market participants should bear in mind that, when volatility is low, there is a measure of complacency in the market. In a high volatility environment, large market moves can occur.