South African white maize futures market shows signs of increased efficiency.
The South African futures market for white maize was tested for efficiency in predicting spot prices in 1997 and 1998. In 1997, there was no long-term relationship between futures and spot prices, but in 1998, a relationship was found. The 1998 futures price accurately predicted future spot prices, indicating progress towards market efficiency and increased liquidity since late 1996.