Nov 4

Weekly Grain Traded CGX - 04 November

CGX now own and operate the igrain market for grain stored on-farm

Growers impacting prices with CGX - Growers are offering grain up for sale at a price, and/or checking CGX which has had firm bids that growers have been able to sell into, above cash at site prices.
23 buyers met grower offer prices to purchase 26 grades - Wheat, barley, canola, chickpeas and lupins traded in 14 port zones.
CGX and igrain enable growers to offer grain for sale - Growers delivering to warehouse can offer grain for sale on CGX. Growers with grain on-farm can offer grain for sale on igrain and determine pickup/delivery timeframes.

27 buyer businesses purchased grain through Clear Grain Exchange (CGX) last week. More buyers were searching for grain offered for sale. — 23 buyer businesses purchased grain through Clear Grain Exchange (CGX) last week. More buyers were searching for grain offered for sale.

When your grain is offered for sale on CGX all buyers can see it and try to purchase it.

Market stats for last week

23 buyers purchased grain on CGX - more were searching for grain
- 4 in QLD
- 7 in NSW
- 7 in VIC
- 6 in SA
- 15 in WA
122 sellers sold grain through CGX across 163 transactions - more were offering grain for sale
10 agent and/or advisory businesses sold grain on behalf of growers
26 different grades traded
5 commodities - Wheat, barley, canola, chickpeas, and lupins
14 port zones traded across QLD, NSW, VIC, SA and WA

Growers impacting prices with CGX

Growers appear to be getting more comfortable offering grain for sale rather than hitting cash bids as harvest progresses, and it's yielding results in prices.

An example is Chickpeas where cash prices at site have had a steep correction lower as that harvest has advanced, if growers are not comfortable with those prices they have the opportunity to list their sell prices for all buyers to see.

These behaviours are more evident across barley and wheat grades as those harvests progress.

Growers can offer their grain up for sale at a price, and/or check Clear Grain Exchange (CGX) which has had firm bids that growers can sell into above cash at site prices.

Other advantages of selling into a firm bid on CGX is that you retain title of your grain until paid, you're paid within 7 business days, and you're anonymous!

New crop is starting to trade through CGX as growers start to offer grain for sale and it's often yielding better values.

It is still early in the harvest and growers appear cautious and hesitant to offer grain for sale too early, rather opting to monitor prices.

The more grain that is offered for sale by growers, the bigger the influence growers can have on prices this harvest. They can show buyers where they're a seller.

Some growers are offering grain for November, December and/or January delivery to help give themselves time but still take advantage of any price jumps.

Growers offering grain for sale at a price, rather than selling into cash prices at site, are likely to help stabilise prices rather than see downward harvest pressure.

Old crop continues to trade at strong prices versus advertised cash prices.

Last week 15 buyer businesses purchased 12 grades of wheat across Queensland, New South Wales, Victoria, South Australia and Western Australia.

APW1 wheat was trading $375/t Kwinana, $328/t Kembla and $322/t Brisbane as examples with higher protein grades and niche grades such as noodle attracting better prices.

Barley grades were purchased by 12 different buyers with feed trading $320/t Kwinana, $293/t Brisbane, and $290/t Melbourne as examples. Where malt traded it attracted better prices.

Buyer appetite for canola exists with 5 buyers purchasing various grades including GM and non-GM, ISCC approved and not ISCC approved.

Growers should remember to offer up their canola on CGX with the "EU" grade if they want to declare it's compliant with ISCC as often there are extra buyers looking for that accreditation.

Buyers were also looking for chickpeas and lupins last week with chickpeas trading $785/t in Gladstone port zone, lupins traded $510/t Kwinana and Geraldton.

Growers have a say in the price of Australian grain and shouldn't underestimate their impact.

If growers sell a lot of grain quickly by hitting bids on cash boards, it can push grain prices lower.

This often happens at harvest as growers get their grain and want cash, it's referred to as "harvest price pressure".

Buyers that are active on cash boards will be monitoring this behaviour from growers and adjusting the prices they're bidding.

If growers can offer grain for sale at their sell price ahead of harvest and during harvest, it could help to support prices.

In the last month there have been FIRM bids for grain in Clear Grain Exchange (CGX) that growers can sell into if selling grain, that were over and above published bids on cash boards, particularly through Queensland and northern NSW.

Make sure you check Clear Grain Exchange if selling to make sure you don't undervalue your grain, either login or call the team anytime for help.

If you don't like bid prices, simply list it for sale at the price you want so all buyers can see it and try to buy it!

A summary of what traded on CGX last week is provided in the charts and tables below. See more prices of what traded by logging in to your CGX or igrain accounts.

The tables below provide a summary of traded prices on CGX last week

Note: GTA location differentials are used to convert prices to a port equivalent price, actual freight rates can differ particularly in the eastern states. You can offer any grade for sale to create demand.