VIEWPOINT: FUTURES CONTRACTS FOR AGRICULTURAL COMMODITIES - IS THE TIME RIPE FOR SOUTH AFRICA?

Arguing a case for or against a futures contract for an agricultural commodity in South Africa is made exceptionally difficult because of the lack of research and knowledge on the subject locally. This is further complicated because it involves different disciplines as well as a dependence on international experience. Nonetheless, there are certain requirements that are essential for the successful implementation of an agricultural contract. The most important are: A free market, liquidity, structure of the industry and price risk, followed by location, type of market operation, training and public relations, clearing house, product characteristics, international interaction and legislation. Based on these requirements there are at present certain commodities which are more suitable than others. They are wool, mohair, meat and potatoes. However, it will require more detailed analysis to accurately determine their potential.


Other Titles:
Termynkontrakte vir landboukommoditeite - Is die tyd ryp vir Suid-Afrika?
Issue Date:
1994-03-1994-03-1994-03
Publication Type:
Journal Article
ISSN:
0303-1853
Language:
English
Published in:
Agrekon, Volume 33, Issue 1
Page range:
50-56




 Record created 2018-02-02, last modified 2018-02-02

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)