Oct 28

Weekly Grain Traded CGX - 28 October

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

Demand tentative as harvest takes shape - Buyers are watching grower selling behaviours when determining their bid prices.
23 buyers met grower offer prices to purchase 22 grades - Wheat, barley and canola traded in 12 port zones across QLD, 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.

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

23 buyers purchased grain on CGX - more were searching for grain
- 8 in NSW and QLD
- 8 in VIC
- 5 in SA
- 8 in WA
86 sellers sold grain through CGX across 116 transactions - more were offering grain for sale
5 agent and/or advisory businesses sold grain on behalf of growers
22 different grades traded
3 commodities - Wheat, barley, and canola
12 port zones traded across QLD, NSW, VIC, SA and WA

Growers have a say in grain prices

The pace of harvest picked up in Queensland, northern New South Wales, and some parts of Western Australia, while expectations of crops remain low across many parts of southern Australia.

Export markets for Australian grain are reportedly active, albeit that they would like to have Chinese demand involved which remains absent, and end users are poised to buy some coverage.

Chickpeas continue to dominate the export focus in north eastern markets which may impact demand for cereals there until they can export them in coming months.

On the sell side there has been evidence of some selling by growers into bids on cash boards in the northern areas which buyers are watching intently.

Growers have a say in the price of Australian grain and shouldn't underestimate their impact.

If growers sell a lot of grain quickly by hitting bids on cash boards, it can push grain prices lower.

This often happens at harvest as growers get their grain and want cash, it's referred to as "harvest price pressure".

Buyers that are active on cash boards will be monitoring this behaviour from growers and adjusting the prices they're bidding.

If growers can offer grain for sale at their sell price ahead of harvest and during harvest, it could help to support prices.

In the last 3 weeks there have been FIRM bids for grain in Clear Grain Exchange (CGX) that growers can sell into if selling grain, that were over and above published bids on cash boards, particularly through Queensland and northern NSW.

Last week on CGX, BAR1 barley and a number of wheat grades such as APW1 and ASW1 were bid well above the best cash bids at locations where growers were harvesting, and offering grain for sale, clearly signalling their sell price to all buyers.

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!

Last week 24 buyers pushed prices up to meet grower sell targets and purchase grain through CGX.

The simple act of grain growers offering their grain for sale and showing buyers the price they want for it, regularly sees grain prices trading at stronger values than published bids.

A lot of grain will be purchased from growers in coming months, and growers should realise they impact the price it will trade.

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.