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Two-month implied volatility on the rand rose to 20%, the highest in more than 11 months and the highest among major emerging currencies. The rise follows the bleak budget and reflects expected currency swings ahead of the ANC leadership conference on December 16-20, when Jacob Zuma is set to be replaced as party leader.
Higher implied volatility raises hedging costs for South African importers of feed ingredients. The story describes currency risk rather than a direct change in feed supply or demand.
moneyweb.co.zaPaul Wallace, BloombergOct 27, 2017Not 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.
