Soft Red Wheat Futures and Options are Derivatives Contracts that provide local investors exposure to international wheat prices. The underlying instrument meeting specifications as listed and traded on the Chicago Board of Trade (CBOT), a division of the CME Group. Through this easily accessible product, local investors can effectively hedge against international price risk and identify demand patterns in the global wheat market. Contracts are cash settled in rands and can easily be accessed through JSE Commodity Derivatives members.
Who is this for?
Local market players seeking to protect themselves against adverse price movements should consider the JSE’s Soft Red Wheat Futures and Options. The contracts can also be used by speculators hoping to make a profit on short-term movements or benefit from the spread opportunities between the local and international market.
- Enables easy access to the international market.
- Effective price risk management and evaluation of both current and future world supply and demand.
- Enables you to hedge or gain exposure based on expectations of directional price or volatility in soft red wheat.
- Enhanced spreading opportunities.
- Suitable as a risk diversification instrument.
- The risk of loss given local and global environmental and socio-economic factors which can significantly impact the price of commodities
How to get Soft Red Wheat Futures and Options
To access Soft Red Wheat Futures and Options, register as a client with an authorised JSE Commodity Derivatives member firm , deposit the required initial margin and sell or buy according to your needs.
- No limits apply to individuals, foreigners or corporate entities.
- Pension funds and long-term insurance companies are subject to their 25% foreign allocation limits.
- Asset managers and registered collective investment schemes are subject to their 35% foreign allocation limits