Grain Guide 2018

Institution Email Number Agbiz Grain general_manager@agbizgrain.co.za 012 807 3002 National Chamber of Milling (NCM) – wheat and maize info@grainmilling.org.za 012 663 1660 Perishable Products Export Control Board (PPECB) achmadh@ppecb.com 021 930 1134 South African Futures Exchange (Safex) info@jse.co.za 011 520 7000 South African Cereals and Oilseeds Trade Association (SACOTA) sacotaadmin@afma.co.za 012 663 9097 South African Grain Information Service (SAGIS) info@sagis.org.za 012 941 2050 Incoterms Incoterms include CIF – Cost, insurance and freight CPT – Carriage paid to DDU – Delivered duty unpaid EXW – Ex Works FOB – Free on board Storage costs Marketing of grain plays a critical role in its profitability. However, the marketing ex­ tends significantly further than pre-season hedging of the grain and in many instances producers are faced with the challenge of whether they should sell the grain imme­ diately and/or rather store it to profit from the possibility of a price increase later in the season. When producers decide to store grain, it is important to make accu­ rate calculations to determine whether it is worthwhile to store or not. Producers Luan van der Walt, economist, Grain SA Contacts: Storage and marketing Scan this QR code to visit the website of the International Chamber of Commerce for more information. should not only take actual storage costs into consideration, but also the interest expense involved in such a strategy. Producers can use the following link (see QR code alongside) to get help in determining what the real costs are for storing grain for the specific period in order to make better decisions in this regard. Incoterms are standard trade definitions most commonly used in international sales contracts. Devised and published by the International Chamber of Commerce, they are at the heart of world trade. 102 GRAIN GUIDE 2018 Storage & marketing