Aug 20

Weekly Grain Traded CGX - 19 August

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

Spotty demand for grain - Australian markets remain unpredictable with pockets of strong demand and prices jumping above levels indicated by published bids.
24 buyers met grower prices to purchase 23 grades - Wheat, barley, canola, and sorghum traded in 9 port zones across QLD, NSW, VIC, SA and WA.
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. — 24 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

24 buyers purchased grain on CGX - more were searching for grain
57 sellers sold grain through CGX across 80 transactions - more were offering grain for sale
6 agent and/or advisory businesses sold grain on behalf of growers
23 different grades traded
4 commodities - Wheat, barley, canola, and sorghum
9 port zones traded across QLD, NSW, VIC, SA and WA

Spotty demand for grains

Demand for Australian grain continues to be "spotty" as international buyers remain focused on grain available from the US and Black Sea.

Future months continue to provide better prices in international markets possibly reflecting expectations of tighter grain availability once the northern hemisphere harvest finalises.

In Australia, markets remain unpredictable with pockets of strong demand and prices jumping up above levels indicated by published bids for buyers to get the deal done.

Generally growers seem reluctant to sell too much at levels indicated by current published bids, and buyers are trying to get through tightening Australian old crop stocks by buying hand-to-mouth until new crop supply becomes available.

In this market there is significant value in growers offering their grain for sale and showing ALL BUYERS the price they will sell for.

Buyers are crunching their numbers and trying to make things work and understand that growers price expectations are generally higher than published bids.

Hence, by offering your grain for sale buyers will know it's there and stay interested in trying to buy it if they can create some demand for it.

Last week there was an increase in demand for barley particularly in Victoria and WA with feed barley trading $320/t Kwinana and $314/t Geelong. Malt grades were attracting slightly better prices if trading.

On the wheat job, APW1 was trading $370/t Kwinana, $336/t Port Adelaide, and $330/t Melbourne. Higher protein grades continued to attract better prices.

Canola and sorghum stored in warehouse was also trading through Clear Grain Exchange last week.

Grain stored on-farm continues to attract general buyer interest as buyers look to use their execution expertise to get closer to grower sales price targets.

Stock feed wheat was trading $312/t ex-farm up country Victoria, feed barley traded $285/t ex-farm NSW, and lupins $500/t ex-farm NSW as examples.

If you don't ask you don't get! If you have grain either in warehouse or on-farm, make sure you OFFER it for sale on Clear Grain Exchange or igrain respectively.

By having your grain on offer for sale on Clear Grain Exchange or igrain, it means you don't miss opportunities that may pop up to sell your grain at the price you're after.

If buyers can't buy it now, they know it's there and stay interested, trying to purchase it in the future if the market allows them to push their prices higher.

It is free to have your grain on offer and you can edit your offer price or cancel your offer at anytime before it trades. Plus you're anonymous at all times and protected by best-in-class contract settlement if your grain sells.

There is no downside in offering your grain for sale on CGX (if in warehouse) or igrain (if stored on farm) - only upside!

Simply login to your CGX account to view all prices and determine what you think your grain is worth. If you need help using your CGX account, just call us. We're available anytime between 9am and 8:30pm AEST and happy to help!

Many published "bid prices" have pulled back recently

Chart: Traded prices on CGX are dots versus best published bid lines.

A summary of what traded on CGX last week is provided in the charts and table 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.