Article

JSE: Physical deliveries amid tight stock levels

Published: 04/11/2024

The JSE, as a licensed exchange, is obligated to ensure a fair, efficient, and transparent market in futures contracts listed and traded on its commodity derivatives market. An integral aspect of maintaining this market’s integrity in physically settled commodity futures contracts is market participants’ compliance with their delivery and other obligations as recorded in the JSE Rules and Contract Specifications.

The specifications contain extensive provisions regarding approved storage operators’ obligations and responsibilities in respect of the commodities stored in terms of JSE receipts, one of which is their obligation to store and deliver the quality and quantity of commodities at the location recorded on the JSE receipt.

The JSE has been informed that the 2023/24 summer grains and oilseeds crop has had a difficult season due to dry weather, resulting in a lower harvest than the previous season. In these circumstances, and as a result of the transition from one season to the next with lower stock levels compared to the previous year, there may be concerns regarding the availability of commodities in certain regions.

Market participants are urged to manage their outloading booking slots promptly and are reminded of the 25% booking slots designated for JSE receipts on the main hedging months. Furthermore, clients are urged to utilise the JSE Stock of Grain Report to identify where the majority of JSE stock levels per silo are stored and to consult the Silo Unavailability Report. – JSE Market Notice