The application for an interim interdict by Grain SA against the JSE’s decision to abandon the soybean Multiple Reference Point model and return to a single reference point will be adjudicated on Friday, 6 November 2026.
The relief sought by Grain SA is interim in nature, pending the determination of a separate court application to review and set aside the decision taken by the JSE. This separate review application for review has been launched on Monday 26 October 2026 and has already been served on the JSE.
The hearing on Friday 6 November 2026 therefore concerns temporary relief. It is not the final determination of the underlying dispute.
Supporting our concerns
Grain SA welcomes the support expressed by AgriSA, TLU SA, AFASA and Senwes. AgriSA’s statement issued on2 November supports Grain SA’s concerns about soybean location differentials and calls for urgent, constructive engagement with the JSE and relevant stakeholders. TLU SA has also expressed support for the legal process undertaken by Grain SA’s.
Grain SA’s stance is a pragmatic reality that the price formation framework must mirror where the soybeans are being produced, the location of processing and how the soybean commodity moves in reality at ground level. Decisions on methodologies that are affecting producer income must be supported by reliable evidence, and a transparent assessment which are evaluated against the agreed criteria. Grain SA contends that producers must have the opportunity to arbitrage and delivery at a zero-rate delivery point with their own transport.
A location differential in the futures market, is a price adjustment for delivery at a specific location. Although the location differential does not establish the selling price for each farmer, it may certainly affect the offers farmers receive in the physical market. Grain SA is concerned that the lack of responsiveness to trade realities provide opportunities for market powers to abuse standard information to the disadvantage of producer prices and income for producers.
When lower prices paid don’t automatically reach consumers
This is important to consumers and the entire value chain. Lower prices paid to producers does not automatically translate into cheaper food. Benefits may be retained elsewhere in the value chain without reaching consumers. Inefficient differentials can create unnecessary costs, while fair and transparent pricing supports competition and the efficient movement of commodities from producers to processors.
The multiple reference point methodology will ultimately encourage more producers to produce soybeans commercially.
With a lower selling price, which translates into lower income, there may be less cash to cover production finances, buy seed and fertiliser, service equipment and reinvest in the next crop. Farmers with fewer marketing options, and less working capital, have less leverage.
The multiple reference point methodology will give producers confidence in market structures through which they sell their crops, for them to focus on producing the best possible harvest, rather than contending with pricing strategies that work against them.
The impact of the JSE’s decision will vary depending on farm location, delivery location, buyer and marketing arrangement. However, Grain SA’s concern is that farmers should participate in a transparent market that recognises the economic value of their crops and is subjected to fair and transparent location differentials. Supporting developing farmers means ensuring access to markets that offer fair chances to build sustainable farming enterprises.
Safeguarding producer’s interests
With the petition and memorandum presented to the JSE in August 2026, Grain SA has approached the industry for technical input, submitted evidence, supported the development and testing of an alternative model and advocated the producer’s concerns. The current legal proceedings are an extension of Grain SA’s attempt to safeguard producers’ interests.
Grain SA promotes a fair and transparent agricultural derivatives market and remains open to constructive engagement with the JSE. Grain SA’s goal is a fair, cost-effective, efficient, transparent and evidence-based approach that embodies and reflects physical-market reality and allows for competition throughout the value chain.
Grain SA will communicate the developments in the matter following the hearing on 6 November 2026.
