Furphy of a private grain bid - don't sell yourself short
Private grain bids are an indicator of a Buyers lift in demand
What is a private bid?
A private bid is a price for grain provided by a buyer, to a seller, on the proviso that it is not shared.
It can be accompanied with comments about the price being above advertised prices and for specific growers or advisors only.
Often private bids can make growers feel they’re getting a special deal, or that their advisors have created extra value, which may make the bid more attractive and create a higher willingness to sell.
The reality is private bids create less transparency around what grain is worth!
Don't sell yourself short!
Private bids can result in buyers securing grain at a price without creating further competition from other buyers and is often more prevalent when demand for grain increases.
If other buyers were aware of the private bid, they would know the price they need to be at or above to buy grain.
That's how a market works! The buyer with the highest demand and highest willingness to pay should get the grain.
The chart above shows the number of buyers searching for grain offered for sale and their total searches on CGX each week.
110 buyers on average every week are making more searches for grain offered for sale on CGX just last week!
There are over 400 buyers registered and ready to buy grain offered for sale on the exchange.
The intent of CGX is to get as many buyers as possible to try and buy your grain.
An efficient way to determine your grain’s value is to offer it for sale on CGX, knowing you’re protected by anonymity and secure settlement.
This lets ALL buyers see your grain, crunch their numbers and try to buy it, attracting more buyers into the market and creating demand!
If a buyer bids you directly at or above the price you've offered your grain for sale, simply cancel your offer, and then sell your grain to the buyer as you normally would.
You’ve lost nothing by having your grain offered for sale, but you’ve gained more certainty over your grain’s value, and on average, it’ll sell on the exchange at prices you may not have known existed!
If you use CGX correctly it can only add value
We're here to help!
Please get in touch at anytime!
If you use a grain marketing agent, they can access the exchange on your behalf.
1800 000 410 or support@cgx.com.au
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