The number of maize futures contracts traded on the JSE has fallen on expectations of a bumper maize crop. During the drought, traders’ increased demand for futures pushed contract prices higher as they tried to cover losses due to an uncertain yield outcome. "The main driver [for futures contracts traded] was on the back of the anticipated bumper crop, but we are starting to see an uptick in open interest, which translates to market participants starting to build up their positions," said the head of commodities at the JSE, Raphael Karuaihe. Karuaihe said the excess maize supply would not exert a negative influence on the market, but would ensure a sustainable derivatives market. At the end of June 2017, 522,234 white maize futures contracts were traded, 31.5% less than those traded by June 2016. For yellow maize, volumes traded were 302,777, which was down by 2.68%. Maize futures contract prices also peaked during the drought. A white maize September-future contract traded at R2,5...
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