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Options markets are pricing a rand rebound after the currency gave up all its 2024 gains and traded near its weakest level since the May elections. Six-month risk reversals hit record lows, meaning the cost of hedging further rand declines has fallen.
Hedge funds had sharply cut their long rand positions in the week through 17 December.
If the rand firms, the rand cost of dollar-priced imports such as soybean meal and corn falls for South African buyers. The move is a currency-positioning signal rather than a change in grain supply.
moneyweb.co.zaRobert Brand, BloombergDec 29, 2024Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
