Dec 23, 2024

Weekly Grain Traded CGX - 23 December

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

Buyer demand is strong for Australian grain - Growers have a say in the price of Australian grain. Be sure to do so ahead of the festive season.
31 buyers met grower offer prices to purchase 30 grades - Wheat, barley, canola, lentils, lupins, and oats traded in 17 port zones.
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. — 31 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

31 buyers purchased grain on CGX - more were searching for grain
- 9 in QLD and NSW
- 11 in VIC
- 8 in SA
- 17 in WA
187 sellers sold grain through CGX across 238 transactions - more were offering grain for sale
13 agent and/or advisory businesses sold grain on behalf of growers
30 different grades traded
6 commodities - Wheat, barley, canola, lentils, lupins, and oats
17 port zones traded across QLD, NSW, VIC, SA and WA

Buyer demand strong for Australian grain

Many buyers appear to be wanting to organise the grain purchases on their books ahead of the holiday period, conscious growers may be hard to get hold of.

Reports of a general lift in “private” bid activity from buyers last week are an indicator of a lift in demand for Australian grain.

A private bid is a price for grain provided by a buyer to a seller on the proviso that it is not shared.

It can be accompanied with comments about the price being above advertised prices and for specific growers or advisors only.

Often private bids can make growers feel they’re getting a special deal, or that their advisors have created extra value, which may make the bid more attractive and create a higher willingness to sell.

The reality is private bids create less transparency around what grain is worth.

There may be more volume that could trade at or above the private bid growers or their advisors have received, they just don’t know about it.

If other buyers were aware of the private bid, they would know the price they need to be at or above to buy grain. That’s how a market works!

Private bids can result in buyers securing grain at a price without creating further competition from other buyers and is often more prevalent when demand for grain increases.

In more transparent and efficient markets, the buyer with the highest demand and highest willingness to pay gets the grain.

So how do growers make sure they're getting full value for their grain?

Simply offer your grain for sale at the price you want on an independent, secure and transparent exchange. All buyers can then see your grain, crunch their numbers and try and buy your grain.

A total of 104 buyers made 6,043 searches for grain listed for sale on Clear Grain Exchange (CGX) just last week.

There is demand for all grades of grain with 30 different grades trading through CGX last week in 17 port zones across Australia.

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

It costs nothing to have your grain offered for sale on CGX, and you can edit or cancel it at anytime with no cost. If it sells CGX charge $1/t and we always say to factor that into your price.

If a buyer approaches you directly with a bid at or above the price you have it offered on CGX, simply cancel your offer and sell it to them as you normally would.

You've lost nothing by having you grain offered for sale on CGX, yet you've given every buyer in the market the opportunity to try and buy your grain. You've encouraged more buyers to participate in buying your grain, and you've helped ensure as many buyers as possible continue to try and buy your grain.

Growers have a say in the price of Australian grain by showing all buyers the price at which they are willing to sell. This is achieved by proactively listing grain for sale, rather than simply reacting to buyer bids.

Grain is regularly worth more than published bids.

Buyers can't buy what they can't see and there are plenty of buyers who want your grain.

Before having a well earned break this festive season, make sure you offer your grain for sale so all buyers can see your target price and it can sell.

If you're unsure of your target price, simply start higher at a price you will definitely be happy with, you can always adjust it lower.

The important thing is growers should have their grain on the market showing all buyers the price they would sell for, while being protected by anonymity and CGX's secure settlement.

That's how we'll keep as many buyers as possible trying to buy Australian grain.

The team here at CGX wishes everyone a safe and merry Christmas and happy New Year. We'll be available every business day through the festive period.

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