Published On: Thu, May 4th, 2017

Growing interest in JSE soya bean product

JSEJOHANNESBURG, (CAJ News) – THE markets are responding positively to the Soya Bean Crush futures contract the Johannesburg Stock Exchange launched recently to provide simultaneous exposure to the crop and its processed by-products.
Trades have started to gain momentum and R800 000 in value has already been traded in April.
Chris Sturgess, JSE Director: Commodity Derivatives, said JSE added the new contract to its agricultural market offering earlier this year, following interest from both soya bean processors and commodity traders.
“Our clients wanted to be able to trade the entire soya bean crush complex in a single product and so we created an index,” said Sturgess.
The Soya Bean Crush futures complex consists of JSE Soya Bean futures contracts, CME Soybean Meal futures contracts and CME Soybean Oil futures contracts.
The crush value is traded based on expectations of the future price movement compared to the other components of the contract.
It allows soya bean processors to hedge against price fluctuations and improve sustainability of their business.
Craig Robinson, Managing Director of Russell Stone International (RSI), which has recently executed the transactions, said the new contract made hedging much easier.
“Before the introduction of this contract you had to trade in South African and American beans and oil, and Argentinean meal in order to hedge meal, oil or the crush spread,” said Robinson.
Soya beans, or soybeans as they are known in the United States, are one of the most important food crops globally today, with applications for both human and livestock consumption.
CAJ News

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