SAFEX
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.
Namibian wheat price applicable from 1 November 2017 until 31 January 2018:

N$ 5 178.13 for wheat B1 delivered milldoor

N$ 5 082.13 for wheat B2 delivered milldoor

N$ 4 986.13 for wheat B3 delivered milldoor
Formula A
A 5year average, of the actual SAFEX spot price, inflation adjusted, plus:

30% of the 5year 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 5year 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.
