SAFEX

Wheat Actual Spot Price & Future Price for 06 Jul 2017 to 18 Aug 2017

The floor price for wheat is determined by the following principles as agreed upon by way of a signed marketing agreement between millers and producers:

The formulae are:

Formula A:

A 5-year average, of the actual SAFEX spot price, inflation adjusted, plus:
• 30 % import parity ex Upington landed in Windhoek and,
• 70 % of the average wheat price for Hard Red Winter (HRW) ex USA, via Walvis Bay, landed in Windhoek
Or
Formula B:

The average of the actual SAFEX spot price for the whole of October, plus:

• 30 % import parity ex Upington landed in Windhoek and,
• 70 % of the average wheat price for Hard Red Winter (HRW) ex USA, via Walvis Bay, landed in Windhoek

The higher of the two prices of formulae A or B will serve as the floor price for wheat marketed that season.