Disconnect remains between grower bids and global values

Australian wheat and barley remains the most competitively priced grain into global markets by a large margin.

The comparison below shows Australian wheat remains the most competitive into the major consumption areas of Asia and the Middle East compared to other exporters.

As an example, the table shows the price difference between Western Australian ASW1 and Black Sea feed wheat into South East Asia is US$85/t (or A$119/t) and into North Asia the difference is $US89/t (or A$124/t)!

Hence make sure you offer your grain at your price on Clear Grain Exchange and let all buyers see it and try to buy it.

There is often better value out there than best published bids or those advertised on cash boards.

The table shows indicative wheat and barley values based on best published bids to growers this week plus fobbing costs and exchange rate conversion to provide a US$ Free on Board (FOB) price basis ex Western Australia and Eastern Australia and our major competitor origins of Black Sea and US Pacific Northwest.

The table then adds current bulk sea freight rates to the FOB price to provide a comparison of values from those origins delivered to the major importers on a Cost and Freight (CNF) basis.

There are plenty of buyers who want to buy Australian grain. Many buyers are searching for grain on offer on Clear Grain Exchange and indications point towards a strong demand profile for Aussie grain.

If many growers sell a lot of grain quickly, it may push values lower. A slower selling pace from Australian growers will help to underpin prices to help it line-up with grain moving off-shore.

Australian growers should know that your behaviour can have a large impact on prices you receive, particularly when the world needs Australian grain, and Australian grain remains well priced into world markets!

Grain is consistently selling at better values on Clear Grain Exchange (CGX) than published bids. Make sure you have your grain on offer on CGX, at the price you want so all buyers can see it and try to buy it.

Let’s ensure you’re receiving your grain’s full value.

View recent trades on the exchange or call 1800 000 410.