Grain SA dismayed about JSE's maintained single reference point approach for soybeans

South African grain and oilseed producers are operating under severe financial pressure with narrow margins, rising input costs and substantial production risk, and can therefore not afford additional inefficiencies resulting from a location differential methodology that may not adequately reflect the geographic distribution of soybean production and consumption. Industry body Grain SA says, in this regard, that the JSE's intention to return to a single reference point can create artificial transport assumptions and expose producers in certain production regions to deductions that do not correspond with actual commercial stock movements.

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