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