Beef Futures

Futures contract
Beef carcass contract
Underlying Instrument
Chilled beef carcasses consisting of two sides per carcass, graded at A2/A3 and having conformation of 2, 3, 4 or 5, a damage class of not more than 1 on either the buttock, loin or forequarter and no measles in terms of the national beef grading guideline. Carcasses must comply with minimum dressing standards and must be fir for human consumption. For the purpose of this contract, deboned carcasses shale be considered only in instances where it is possible to work back the original carcass price.
Contract Size
1 contract = 1000kg
Contract Months
Contract Months shall be the four main hedging months, namely March, June. September and December
Settlement Method
Daily mark-to-market procedure for this contract will follow the current daily settlement process applied to the grains market Upon expiry, settlement shall take place in cash. The settlement price shall be determined by the JSE by incorporating volume weighted average weekly selling prices of A2 and A3 carcasses over the two weeks preceding the Last Trading Day. Where applicable, the settlement price will also include volume weighted selling prices derived from the transfer prices of deboned hindquarters. Price information for the desired grades will be contributed by Red Meat Abattoirs Association through associated agreements with specific members in order for the JSE to validate contributions directly with the contributing abattoirs. The JSE will publish its indicative settlement price after Last Trading Day; subject to audit with the final settlement price (FSP) applied on Clearance Date (2 business days following last trading day). The JSE reserves the right to revise its settlement methodology from time to time.
Daily Limits
R2.50/kg above or below previous day’s mtm price. Extended to R3.50/kg as per JSE Rules
Initial Margin
As determined by the JSE Risk from time to time referencing the current margining methodology.
Maximum Position Limits
No participant (defined as a member or registered client) or associated group of participants may hold in excess of 1450 contracts as a net position across all listed expiries. The position limit may be adjusted from time to time.