May 22, 2023

Weekly Grain Traded CGX - 22 May

Buyer appetite increased and prices improve - 40 buyers bought grain on CGX with prices generally increasing across most grades and locations
Wheat grades dominated trade but barley prices increase - feed and malt barley grades traded across many port zones as buyers searched grain offered for sale
If you have grain in warehouse, offer it for sale at your target price - Your grain can't sell if buyers can't see it and try to buy it!

40 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

40 buyers purchased grain on CGX - more were searching for grain
- 13 in NSW
- 12 in VIC
- 2 in QLD
- 7 in SA
- 21 in WA
340 sellers sold grain on CGX with more offering grain for sale
21 agent and/or advisory businesses sold grain on behalf of growers
31 different grades traded
6 commodities - wheat, barley, canola, lupins, faba beans, oats
17 port zones traded across QLD, NSW, VIC, SA and WA

Buyer appetite improves prices

Prices generally improved across most grades and locations last week, with increased buyer appetite evident on CGX. Ongoing dry conditions across many Australian growing regions seems to have caused a change in market sentiment. Long term forecasts also suggest a potentially drier winter period which may have been the catalyst for buyers to look to extend their cover. Sellers reacted to these conditions by asking more for their grain, with 340 sellers having their offers matched as buyer activity increased throughout the week. Wheat remained the dominant commodity traded across most port zones, although barley prices and volumes increased across southern regions. Feed barley traded $347/t Port Kembla, $332/t Melbourne, $313/t Geelong, $307/t Portland, $295/t Kwinana, $293/t in Port Adelaide, $290/t Albany and $250/t in Thevenard. Malt grades traded with PL1 $362/t & SP1 $355/t in Melbourne, MAXI1 traded $345/t in Kwinana while MA1 was $295/t Port Adelaide. ASW1 prices improved in many locations reaching $382/t Esperance, $378/t Newcastle, $370/t Port Adelaide, Albany & Geraldton, $368/t Geelong, $365/t Port Kembla and $350 Kwinana as examples. Buyer appetite for lupins was evident in the west, with LUP1 trading $365/t Kwinana and $345/t Geraldton. Oats traded $342/t Albany Regardless of what grain you have in warehouse or whether you want to sell in the near-term or are prepared to target higher prices and potentially hold grain for longer; there is value in having it on offer. Whilst sowing activities are front of mind for many growers, buyers are actively searching grain offered for sale. They can crunch their numbers and match your offer price when you least expect it. That's the beauty of the exchange. Firm offers on an independent and secure exchange draw buyer eyes, searching for the grain they need in the location required. By having your grain on offer and available for buyers to see, you can create demand for your grain.

The tables below provide a summary of traded prices 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.