TLU SA supports Grain SA’s legal action challenging the Johannesburg Stock Exchange’s (JSE) decision to revert to a single reference point for calculating location differentials on soybean futures contracts.
On 16 October 2026, Grain SA filed an application for review in the Gauteng Division of the High Court in Johannesburg, challenging the JSE’s decision of 20 July 2026. TLU SA has been cited as a respondent because of its support for retaining the Multiple Reference Point model.
According to TLU SA, this is not merely a technical trading matter. Location differentials affect the final price producers receive for their grain and can consequently influence their profitability and the sustainability of their farming operations.
“Producers carry the production risk and need to know that pricing mechanisms are fair, transparent and practical. Decisions that affect producers’ income cannot be made without proper consideration of the realities on the ground,” says Bennie van Zyl, General Manager of TLU SA.
TLU SA is particularly concerned that location differentials do not always adequately reflect actual logistical circumstances. Where producers transport grain themselves to buyers’ processing facilities, the basis for any transport-related price adjustments must be clear and fair.
The organisation also emphasises that producers and their representative organisations must be meaningfully involved in decisions about market mechanisms that directly affect their marketing opportunities and income.
TLU SA calls on the JSE to ensure transparency in its decision-making process, properly consider the practical implications for producers and engage with organised agriculture to find solutions.
“A sustainable grain industry requires a market system that not only functions technically, but also protects producers’ interests. The people who produce the grain and carry the risk must have a meaningful voice in decisions that affect their businesses,” Van Zyl concludes.
