Grain SA in a statement indicated disappointment by the decision by the Johannesburg Stock Exchange (JSE) not to retain the Multiple Reference Point (MRP) model for calculating soybean location differentials.
Grain SA has expressed disappointment over the Johannesburg Stock Exchange's (JSE) decision to abandon the Multiple Reference Point (MRP) model for calculating soybean location differentials, arguing that the move ignores years of research and risks disadvantaging producers already facing mounting financial pressure.
The agricultural body said the JSE's decision to revert to a single reference point system failed to adequately explain why the MRP model did not meet the exchange's own evaluation criteria after a two-year pilot.
However, the JSE said it had carefully considered submissions from market participants before deciding to return to the existing methodology.
According to the exchange, the review identified "structural and operational limitations" that undermined confidence in the MRP model, including difficulties in sourcing accurate and auditable soybean crushing data.
