Dec 5, 2022

Weekly Grain Traded CGX - 05 December

Don't add to the harvest pressure on prices - If more growers were offering grain for sale at higher prices, it would likely be trading at better prices.
Offer your grain for sale rather than hitting a cash bid - Often there is more value available for your grain than you may realise.
There is plenty of demand for Australian grain - Australian grain does not need to get cheaper to remain competitive into international markets.

21 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.

Grain market statistics for last week

21 buyers purchased grain on CGX - more searching
66 sellers sold grain on CGX with more offering grain for sale
8 agent and/or advisory businesses sold grain on behalf of growers
17 different grades traded
7 commodities traded - wheat, barley, canola, sorghum, oats, lupins, peas
10 port zones traded across QLD, NSW, VIC, SA and WA

Harvest pressure on prices!?

21 buyers bought wheat, barley, canola, sorghum, oats, lupins and peas last week through Clear Grain Exchange. Generally grain prices being bid to Australian growers are lower than where they have been in recent months. Yes, CBOT wheat futures have weakened recently and the Australian dollar has increased, but international FOB (free on board) and C&F (cost & freight) bid/offer/trade values of physical grain remain well above prices bid to growers locally. This means Australian grain prices do not need to get cheaper to remain competitive into international markets. So why are Australian grain prices lower? Harvest is well and truly underway in many areas of Australia and reports are many growers are selling into cash bids as trucks deliver grain. A buyer will not push prices higher than where a grower is willing to sell to them. Nor should they. That's how a market works. But growers should realise that selling into cash or contract bids as trucks deliver grain will weigh on prices. This is the traditional "harvest pressure on prices". Another method to sell your grain is to OFFER IT FOR SALE at the price you deem is fair value to all buyers on an independent and secure grain exchange like CGX. If more growers were offering grain for sale at higher prices, Australian grain and the price you receive would very likely be trading at much better prices. Don't add to the harvest pressure, there is only upside in offering your grain for sale on Clear Grain Exchange. Last week APW1 wheat traded $425/t while ASW1 traded $342/t in Kwinana as examples. H1 and H2 traded $455/t and $440/t respectively in Thevenard. Stock feed wheat was trading $364/t Portland. Feed barley was trading $350/t in Brisbane, $340/t in Newcastle and $300/t in Esperance last week. MAXI1 malt barley was trading $330/t across both Kwinana and Albany. Sorghum traded $379/t Newcastle, lupins and oats both traded $300/t Kwinana, while peas were trading $450/t Pt Adelaide. This is just a snippet of grain traded last week. For a more comprehensive view of prices traded across all grades and locations please login to your Clear Grain Exchange account and search the market screens. Often there are more buyers than you may realise that want to try and buy your grain. Let's create the opportunity for them to have a go!

CGX operating at your site

Clear Grain Exchange operates at 25 different grain bulk handling businesses around Australia covering hundreds of storage sites.

Check out our website to find out if you can offer grain on the exchange at your local site. If your site isn't registered on the exchange, get in touch and we can follow-up!