SAFEX

Wheat Actual Spot Price & Future Price for 04 Sep 2017 to 17 Oct 2017

The floor price (minimum guaranteed price) for wheat is determined by the following principals as agreed upon by way of a signed marketing agreement between millers and producers.

Formula A

A 5-year average, of the actual SAFEX spot price, inflation adjusted, plus:

  • 30% of the 5-year average (inflation adjusted) of the actual SAFEX spot price, plus the transport differential ex Prieska landed in Windhoek (official transport applicable for October as determined the first week of November).

and

  • 70% of the 5-year average (inflation adjusted) HRW import parity price from the US and the Rand/US$ exchange, including the transport ex Walvisbay landed in Windhoek.

 

Formula B

  • 30% of the average of the actual SAFEX spot price for October, calculated from 1 October until 31 October each year, plus the transport differential ex Upington landed in Windhoek (as set out in point 1 (a) above).

and

  • 70% of the average HRW import parity price from the US and the Rand/US$ exchange for the month of October, plus the transport ex Walvisbay landed in Windhoek (as set out in point 1 (b) above.

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