Jul 22

Weekly Grain Traded CGX - 22 July

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

Sporadic demand for grain - Demand has been very quality and location specific with grain stored on-farm sought after by buyers.
20 buyers met grower prices to purchase 21 grades - Wheat, barley, canola, and lupins traded in 8 port zones across 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.

23 buyer businesses purchased grain through Clear Grain Exchange (CGX) last week. More buyers were searching for grain offered for sale. — 20 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

20 buyers purchased grain on CGX - more were searching for grain
42 sellers sold grain through CGX across 67 transactions - more were offering grain for sale
7 agent and/or advisory businesses sold grain on behalf of growers
21 different grades traded
4 commodities - Wheat, barley, canola, and lupins
8 port zones traded across NSW, VIC, SA and WA

Sporadic demand for grain

Traded prices of many grains remain stronger than advertised published bids in many cases, however demand remains sporadic and hard to predict.

As a general comment, buyers have lower price ideas than many grower price targets to sell, however at times are needing the grain and bidding prices up closer to grower prices to secure the grain.

This means demand can be sporadic and very specific for grain quality and locations that work for buyers. ie. they're more able to push bids higher for specific grain they can make work.

The trouble with this is growers, and their agents, as sellers can't predict the demand, and so if you wait and react to strong bid or traded prices, you are often too late and the demand is gone.

Hence why it is important for growers, and their agents acting on their behalf, to be proactive and offer their grain for sale at the price they want. All buyers can then see it and try to buy it. You can create demand for your grain, and are less likely to miss out if the demand is sporadic and only there for a short time.

Remember that when your grain is offered for sale on Clear Grain Exchange, you remain anonymous at all times, it can only sell at the price you nominate, you can edit or cancel your offer at anytime before it sells for no fee, and when it sells you retain title until paid via secure settlement.

There is no downside in having your grain offered for sale on Clear Grain Exchange (for grain in warehouse) and igrain (for grain on-farm).

Last week wheat, barley and canola were trading at grower offer prices on the eastern seaboard. There remain price spreads between the wheat grades trading with APH2 trading $390/t Port Kembla, H2 $364/t Melbourne, APW1 $339/t Melbourne, ASW1 $325/t Melbourne and SFW1 traded $329/t Kembla as examples. GM canola traded $685/t Melbourne + oil bonification payments.

In South Australia and Western Australia higher protein wheat continued to fetch better prices than other grades, albeit that the plethora of grades that range between H2 and ASW1 in WA traded a relatively narrow price range of $10/t.

Prices for feed barley are at similar levels to the lower feed wheat grades through SA and the eastern states, highlighting the tight stock outlook for barley after a large export program with the Chinese market back open for business.

Lupin prices remain strong at $600/t in the west.

Demand for grain stored on-farm seemed stronger than the warehouse market in many cases as buyers look to use their logistic expertise to create execution efficiencies and ultimately get closer to grower asking prices.

ASW1 wheat was trading $323/t ex-farm Victorian Mallee, and $310/t ex-farm up-country NSW as examples. Feed barley traded $305/t ex-farm Riverina NSW. Lupins traded $540/t ex-farm southern NSW and up-country VIC. Peas traded $520/t ex-farm VIC Mallee.

When selling through igrain growers can be protected with best in-class insurance for counterparty credit risk.

Growers have a say in the price of Australian grain. Show ALL BUYERS your sell price by offering it for sale on CGX or igrain.

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!

There's no downside. Growers are protected at all times on CGX by remaining completely anonymous and retaining title of their grain until paid with CGX's secure settlement.

Many published "bid prices" have pulled back recently

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

Chart: Traded prices on CGX are dots versus best published bid lines - triangles are CGX trades at other sites within the same port zone worked back using GTA location differentials to equivalent prices at the site of the chart for comparison.

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.