The new contract, based on soft red winter wheat of the Chicago Board of Trade, a different quality standard to the South African produced wheat, provides local market participants with an alternative product should they see trading opportunities arising on this international benchmark.
Rod JSE senior general manager for commodities Gravelet-Blondin said wheat is appealing as an investable asset for several reasons: as a staple crop it is an important component of everyday life across the globe and used in a variety of foodstuffs.
"Our existing wheat contract is the JSE’s second most liquid agricultural product, so it not surprising that we received several requests to include an internationally referenced, rand-settled contract on wheat," Gravelet-Blondin said.
The product will reference pricing from the Chicago Board of Trade, which is operated by the CME Group.
CME Group and the JSE also have an existing license agreement for gold, platinum, copper, silver and WTI crude oil.
