Lamb carcass futures contracts can now be traded on the JSE’s commodity derivatives market, the bourse announced on Friday. "The purpose of the contract is to allow farmers and abattoirs to protect themselves against the risk created through movements in the price of mutton," the JSE said in a statement. To increase the liquidity of the contracts, only the main hedging months of March, June, September and December will be available for listing. The contracts were launched with June and September 2017 expiries available. The new lamb carcass contracts are similar to the beef carcass contracts the JSE launched in December 2015. "The size of the lamb carcass contracts are also 1,000kg of A2 and A3 graded carcasses and they are also cash-settled. The settlement price of the contracts are determined by the JSE and information from the Red Meat Abattoirs Association (RMAA). This partnership ensures that the cash-settled price of the contract accurately reflects the spot-market price of la...
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