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

Andre van der Vyver

Agrekon, 1994, vol. 33, issue 01

Abstract: 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.

Keywords: Agricultural and Food Policy; Political Economy (search for similar items in EconPapers)
Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267705

DOI: 10.22004/ag.econ.267705

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