Dec 9

Weekly Grain Traded CGX - 09 December

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

All grades of grain are in demand - Varying weather through the season and at harvest has seen many growers deliver a multitude of grades.
38 buyers met grower offer prices to purchase 51 grades - Wheat, barley, canola, chickpeas, lentils, oats and peas traded in 16 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. — 38 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

38 buyers purchased grain on CGX - more were searching for grain
- 2 in QLD
- 16 in NSW
- 11 in VIC
- 12 in SA
- 18 in WA
303 sellers sold grain through CGX across 433 transactions - more were offering grain for sale
14 agent and/or advisory businesses sold grain on behalf of growers
51 different grades traded
7 commodities - Wheat, barley, canola, chickpeas, lentils, oats, peas
16 port zones traded across QLD, NSW, VIC, SA and WA

All grades of grain in demand

Varying crop conditions through the season and at harvest has seen grain quality differ across farms and many growers deliver a multitude of grades.

The good news is that there is demand for all grades with 51 different grades of grain traded through Clear Grain Exchange (CGX) last week in 16 port zones across Australia.

A total of 109 buyers made 8,772 searches for grain listed for sale on Clear Grain Exchange (CGX) just last week.

There are plenty of buyers searching for Australian grain.

19 different grades of wheat traded with 29 buyers purchasing those grades last week.

Australia doesn’t produce enough feed quality wheat to satisfy domestic demand. On top of this, there has been a growing offshore feed market.

This means a lot of milling grades such as ASW1 typically get used as feed at some point during the year and so lower wheat grades regularly trade at ASW1 values during a year.

On Clear Grain Exchange we're seeing growers with downgraded and off-spec grades actively offering those for sale at prices closer to ASW1 and yielding results.

For example, AGP1 was trading $5/t below ASW1 in Brisbane and $9/t below ASW1 in Newcastle.

Typically it can take some time for the price spread between lower grade wheats and ASW1 to close, particularly while harvest is still underway and there remain concerns over quality.

But moves in the northern states may be a good leading indicator, and historically using ASW1 values as a guide to what lower grade wheats are worth has been appropriate.

Better quality grades of wheat that are attracting premiums over base grades such as ASW1 have been in demand and growers are offering those for sale at higher prices while demand is strong to see where they may get to.

H1 and H2 wheat was trading $50/t and $40/t over APW1 in the Melbourne port zone last week as examples.

13 buyers purchased a mix of feed barley, lower grades of feed barley and malt grades through the exchange last week with malt grades attracting better prices than feed.

7 buyers purchased canola, 5 purchased oats, and multiple buyers were purchasing chickpeas, lentils and peas plus more were searching for these to buy last week.

There are plenty of buyers that want Australian grain and growers have a say in the price that grain trades.

There is often more value available for your grain than cash prices at site and the team has been doing their best at keeping growers informed via sms and reaching out via phone.

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!

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 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.

Make sure you check Clear Grain Exchange if selling to ensure 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.