Weekly Grain Traded CGX - 24 March

Clear Grain Exchange

Mar 17

Grain stored on-farm can now be sold on CGX

Buyers bid up wheat and barley - APW1 wheat has increased $20/t in some areas since the first week of March.
38 buyers met grower offer prices to purchase 40 grades - Wheat, barley, canola, faba beans, lentils, lupins, oats and sorghum traded in 14 port zones.
CGX and igrainX 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 igrainX 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
- 16 in QLD and NSW
- 8 in VIC
- 14 in SA
- 17 in WA
232 sellers sold grain through CGX across 286 transactions - more were offering grain for sale
15 agent and/or advisory businesses sold grain on behalf of growers
40 different grades traded
8 commodities - Wheat, barley, canola, faba beans, lentils, lupins, oats, sorghum
14 port zones traded across QLD, NSW, VIC, SA and WA

Buyers bid up wheat and barley

28 different buyers bid up to purchase 19 grades of wheat across Australia to make up 74% of all grain traded through Clear Grain Exchange (CGX) last week.

Bid prices of APW1 and other higher protein milling grades in WA have increased around $20/t since the first week of March to $380/t FIS and above. This compares with APW1 in the eastern states trading $345-350/t track port and above for higher protein grades.

In South Australia the price differentials to lower feed grade wheats is zero, while stock feed wheat is still trading below milling grade wheat prices on the eastern seaboard.

Noodle wheat grades have had a bump in demand recently with ANW1 trading $465/t in WA, while durum was also finding homes in NSW.

On the barley job, 12 different buyer businesses bought the commodity with feed demand underpinning prices and malt grades seemingly getting bought for that purpose given no price differences.

Feed barley was trading $363/t in WA versus $322/t eastern states ports indicating export demand is leading prices.

Reports indicate Chinese demand is strong for Australian barley and sorghum currently, hopefully this demand can flow to Australian wheat!

Canola, faba beans, lentils, lupins, oats and sorghum grades all traded through CGX last week with buyers searching and bidding for all commodities across all locations.

38 buyers purchased grain through CGX and igrainX, a total of 126 buyers made 6,012 searches for grain listed for sale on the exchange.

There are plenty of buyers searching for Australian grain offered for sale.

Some growers appear to be sellers at current prices being achieved and some are cancelling offers on the exchange to sell into published or private bids. However in many cases these are at lower prices than what they had their grain offered for on the exchange, which may not be the best approach.

If you're getting bid a price equal to or better than the price you have it listed for sale on the exchange, by all means please cancel your offer and then sell it directly (NOTE: always cancel your offer before selling the same grain elsewhere).

However if you are a genuine seller at prices below the price your grain is listed for sale, edit your offer price on the exchange to your sell price before negotiating with just one or a handful of buyers.

Let all buyers see your grain at the price you are a genuine seller as it helps attract more buyers to buy your grain and is the only way to determine it's true value.

Buyers are actively looking for Australian grain and ready to buy it at prices they can make work. Demand for grain is not an issue. It's the price point that grain will trade which the market is trying to work out, and growers can influence that by offering grain for sale at the price they're genuine sellers.

The amount of grain to be exported from Australia this year and consumed domestically has not yet been bought by buyers from growers.

This means demand for Australian grains remains and growers have a say in the price they sell it for.

Growers are impacting the price of Australian grain by offering grain for sale and leading bids higher.

CGX recently released the ability for growers to offer grain stored on-farm for sale to all buyers from within their CGX online account.

Grain listed for sale that's stored on-farm is protected by counterparty insurance, a diligent buyer registration process, and CGX managing invoicing and collection of funds from the buyer on the growers behalf.

The new independent and secure market for grain stored on-farm is igrainX, and a number of growers were actively offering grain stored on-farm for sale through igrainX and trading last week.

Refer to your emails for more detail regarding igrainX. Please login and have a look and/or call our support team at anytime.

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.