Mar 20, 2023

Weekly Grain Traded CGX - 20 March

Bid-offer spread widens for many grades - 24 grades of wheat, barley, oats, lupins, lentils and faba beans traded last week on more sporadic activity.
Growers creating demand by offering grain for sale - 30 different buyer businesses purchased grain through Clear Grain Exchange last week.
Your grain can't sell if buyers can't see it and try to buy it! - If you have grain in warehouse, offer it for sale at your target price.

30 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

30 buyers purchased grain on CGX - more were searching for grain
174 sellers sold grain on CGX with more offering grain for sale
13 agent and/or advisory businesses sold grain on behalf of growers
24 different grades traded
6 commodities traded - wheat, barley, oats, lupins, lentils and faba beans
15 port zones traded across NSW, VIC, SA and WA

Bid-Offer spreads widen

Trade volumes were a little more subdued last week compared to recent weeks, as price ideas between buyers and sellers open up for many grades and locations. Many growers have sold significant amounts of grain in recent months as price volatility provided opportunities for their price targets to be reached. Many now appear comfortable being patient and waiting for prices to come up to their remaining price targets, with a lot of grain offered at, or above, recently traded prices. Buyers have been more cautious and selective in recent weeks. Grain is trading, however many buyers are sitting on the side lines a little more, searching offers and then jumping in and trying to buy grain that works for them. In saying that, actual traded values of grain have held firm for many grades around Australia and demand remains evidenced by many buyers actively searching grain offered for sale. Last week APW1 was trading $418/t Pt Kembla, $402/t Newcastle, $401/t Melbourne, $400/t Pt Giles, and $400/t Kwinana. ASW1 wheat traded $385/t Port Adelaide and $380/t Geraldton as examples. The premiums on protein grades appear to have come back and/or are more sporadic with H2 trading $420/t Melbourne as an example. ANW1 traded $466/t Kwinana, while SFW1 was $375/t Geelong. Feed barley was trading $327/t Portland, $324/t Melbourne, $315/t Kwinana and $310/t Port Lincoln. The malt market continues to trade sporadically with some very large premiums over feed achieved at times. Lupins are making $345/t in Kwinana and oats are now $365/t Albany. Lentils are up over $800/t and faba beans around the $390/t level in SA. See charts below of what traded last week. For a more comprehensive view of what traded + bids and offers in the market, simply login to your CGX account. Your grain can't sell if buyers can't see it and don't know it exists! Hence if you know the price you want to sell at, offer your grain at that price. By doing so it creates demand for your grain because buyers can see it, crunch their numbers and try to buy it. That's how you can create value for your grain. Grain is regularly trading at prices much higher than best published bids. When you offer your grain for sale on Clear Grain Exchange every buyer can see it and try to buy it, plus you're protected by anonymity and secure settlement.

Do you want to sell but defer delivery and payment?

For growers who want to defer delivery and payment of their grain, you can offer grain at the price you want for delivery in future months. For example, many growers use the future delivery period on CGX to offer warehoused grain for sale with delivery in July. This allows growers to better manage cashflow, price risk, and benefit from any carry that may be paid in the market.