17 hours ago

Weekly Grain Traded CGX - 16 December

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

Thinking prices will fall can be self-fulfilling - If growers panic sell it will push prices lower, but there is demand for all grades of grain.
35 buyers met grower offer prices to purchase 38 grades - Wheat, barley, canola, lupins, and oats traded in 15 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. — 35 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

35 buyers purchased grain on CGX - more were searching for grain
- 11 in QLD and NSW
- 5 in VIC
- 10 in SA
- 21 in WA
327 sellers sold grain through CGX across 452 transactions - more were offering grain for sale
18 agent and/or advisory businesses sold grain on behalf of growers
38 different grades traded
5 commodities - Wheat, barley, canola, lupins, and oats
15 port zones traded across QLD, NSW, VIC, SA and WA

Thinking prices will fall is self-fulfilling

Rain continued to delay harvest in many areas last week, while dry conditions in other areas saw growers trying to get as much crop off before the next rain event.

This saw some dynamic grain markets across the country with growers actively offering grain for sale when their harvest was held up, and when conditions were ok they were rightly focussed on harvesting above all else.

Grain quality continues to be varied as the harvest progresses with a large range of grades being delivered.

These off-spec and lower quality grades can at times feel hard to value. There can be a perception that if there are more of these grades around their price will fall.

Remember Australia doesn’t produce enough feed quality wheat to satisfy domestic demand let alone the 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 regularly trade at ASW1 values during a year.

If growers think prices will go down and because of this, sell a lot of lower grades quickly into bids, it will push those prices down. Hence it becomes self-fulfilling.

An alternative is growers can offer those grades for sale at prices closer to ASW1, rather than selling into cash prices at site, and are likely to help stabilise prices.

There were plenty of examples of this happening through last week.

Grain is regularly worth more than published bids.

There is demand for all grades of grain with 38 different grades trading through Clear Grain Exchange (CGX) last week in 15 port zones across Australia.

A total of 111 buyers made 7,918 searches for grain listed for sale on Clear Grain Exchange (CGX) just last week.

More buyers are searching for Australian grain offered for sale.

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.