JSE introduces wheat futures under licence from the Kansas City Board of Trade

JSE introduces wheat futures under licence from the Kansas City Board of Trade

In late March 2012, the Johannesburg Stock Exchange (JSE) introduced a new foreign-referenced wheat contract to its existing portfolio of international soft commodities. The cash-settled futures contract, based on hard red winter wheat, will reference the Kansas City Board of Trade’s (KCBT) benchmark settlement prices.

“We are very pleased to be working with the Kansas City Board of Trade. Not only do they have a wealth of experience, we also share their commitment to integrity and service for the market we serve. This also represents a further step toward globalising South Africa’s commodity markets,” says Chris Sturgess, Director: Commodities at the JSE.

This is the second foreign-referenced wheat contract to be offered by the JSE, with the exchange listing the first international wheat contract under license from the CME Group in July 2011. 

While this is the first agreement signed with the KCBT, it is not the first time local investors will have access to international agricultural markets. Local traders have had access to global commodity markets since 2009, when the JSE signed the first licensing agreement with the CME Group for a corn futures contract. Today the exchange offers foreign referenced contracts on corn, wheat, soybean, soybean meal and oil.