Nov 25

Weekly Grain Traded CGX - 25 November

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

Wheat prices improve - Prices in the eastern states are lagging Western Australia on an equivalent basis - growers should offer!
35 buyers met grower offer prices to purchase 37 grades - Wheat, barley, canola, lentils, and oats traded in 16 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. — 35 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

35 buyers purchased grain on CGX - more were searching for grain
- 3 in QLD
- 13 in NSW
- 12 in VIC
- 8 in SA
- 18 in WA
265 sellers sold grain through CGX across 380 transactions - more were offering grain for sale
15 agent and/or advisory businesses sold grain on behalf of growers
37 different grades traded
5 commodities - Wheat, barley, canola, lentils, oats
16 port zones traded across QLD, NSW, VIC, SA and WA

Wheat prices improve

A total of 114 buyers made 6,652 searches for grain listed for sale on Clear Grain Exchange (CGX) through the week with improved demand for some grains as harvest progresses.

For wheat alone, 23 buyers purchased 20 grades through last week with some large price differentials emerging across port zones.

APW1 wheat traded $405/t FIS Kwinana port as an example versus APW1 trading at $335/t in Pt Lincoln, $330/t Melbourne, and $328/t Newcastle on a track port equivalent basis.

This is a higher price differential between the west and eastern states than the natural spread for exporting grain which is closer to A$35/t.

In areas where grain is being offered for sale, we're seeing stronger relative prices compared with areas that are not offering and possibly selling into cash bids.

For example, Western Australian grain currently makes up just over a third of all grain offered for sale on Clear Grain Exchange (CGX) where prices are stronger.

Growers in the Eastern States could be more proactive in offering grain for sale at a price rather than accepting cash bids to sell their grain.

We've referenced eastern states growers checking prices at other storage sites around where their delivering grain to give them a better overall picture of what their grain may be worth when offering it for sale.

It will also be prudent to monitor prices in the West as a price guide when offering grain for sale, there may be more value if you ask for it and show all buyers.

Growers have the power to offer grain for sale at a price and create value for their grain.

17 buyers purchased feed and malt grades of barley across 15 port zones around Australia through last week.

Feed barley was trading $330/t Kwinana, $313/t Melbourne, $303/t Port Kembla and $295/t South Australian ports.

Many growers remain focussed on canola as an early cash generating crop and this selling appears to have flowed into prices correcting lower in recent days.

Growers with canola can offer it for sale at price targets rather than selling the market lower.

Canola traded $880/t Kwinana and $758/t Melbourne + oil bonifications last week through CGX as examples.

Oats and lentils continue to trade at prices growers appear comfortable sellers at.

There is often more value available for your grain than cash prices at site and the team has been doing their best at keeping growers informed via sms and reaching out via phone.

Growers can offer their grain up for sale at a price, and/or check Clear Grain Exchange (CGX) which has had firm bids that growers can sell into above cash at site prices.

Other advantages of selling into a firm bid on CGX is that you retain title of your grain until paid, you're paid within 7 business days, and you're anonymous!

The more grain that is offered for sale by growers, the bigger the influence growers can have on prices this harvest. They can show buyers where they're a seller.

Some growers are offering grain for December and/or January delivery to help give themselves time but still take advantage of any price jumps.

Growers offering grain for sale at a price, rather than selling into cash prices at site, are likely to help stabilise prices rather than see downward harvest pressure.

Make sure you check Clear Grain Exchange if selling to make sure you don't undervalue your grain, either login or call the team anytime for help.

If you don't like bid prices, simply list it for sale at the price you want so all buyers can see it and try to buy it!

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.

24/25 Season

New crop is trading through CGX with growers offering grain for sale as harvest progresses.