May 29, 2023

Weekly Grain Traded CGX - 29 May

Strong buyer appetite continued and prices lifted - 38 buyers were active on CGX lifting prices to grower target levels
Buyers bidding up for volume - bids were generally for good volume demonstrating demand for Australian grain
If you have grain in warehouse, offer it for sale no matter your target price - even if your target price is well above recent trades or published bids, there is still value in having your grain offered on CGX

38 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

38 buyers purchased grain on CGX - more were searching for grain
- 13 in NSW
- 14 in VIC
- 2 in QLD
- 13 in SA
- 20 in WA
430 sellers sold grain on CGX with more offering grain for sale
24 agent and/or advisory businesses sold grain on behalf of growers
31 different grades traded
6 commodities - wheat, barley, canola, sorghum, lupins, faba beans
16 port zones traded across QLD, NSW, VIC, SA and WA

Buyer appetite for grain lifts prices

Buyer appetite continued to increase last week with 38 buyers active on CGX, lifting prices to grower target levels. Buyers were actively bidding up to match offers with bids generally being for reasonable volumes, demonstrating demand for Australian grain. 31 different grades of wheat, barley, canola, sorghum, lupins and faba beans traded across 16 port zones in Australia creating price discovery for sellers looking to set their offer price. ASW1 wheat prices lifted in all locations reaching $386/t Esperance, $376/t Albany, $374/t Port Adelaide, $373/t Port Kembla, $369/t Geelong, and $360/t Kwinana and Port Lincoln as examples. H2 grade was $480/t Kwinana, $410/t Esperance, $407/t Port Kembla, $405/t Brisbane, $389/t Port Adelaide, $387/t Portland, $385/t Melbourne and $358/t in Lucky Bay. Canola traded $617/t Port Kembla, $595/t Port Adelaide and $557/t Portland. GM canola was $695/t Geraldton, $670/t Albany, $608/t Port Adelaide, $599/t Port Lincoln and $579/t Geelong showing generally strong buyer appetite with prices for GM canola trading above non GM CAN grades in some locations on CGX. Lupin prices increased with $369/t Kwinana, $355/t Geraldton & $270/t Port Lincoln trading as examples. FIE1 reached $405/t Port Adelaide while sorghum traded $379/t Newcastle. If you are currently holding grain, now may be a good time to engage the market by offering on CGX. Even if your target price is well above recent trades or published bids your offer will attract buyers who are searching offers for the grain they require. Last week, H2 traded $480/t Kwinana, well above the best published bid of $400/t collected from independent third party Profarmer. Without sellers offering their grain at this price we may never have known that buyers were willing to pay $480/t for H2 in Kwinana. Hence if you have a price in mind, offer it on the exchange and let all buyers see it, crunch their numbers and try to buy it. If you are waiting for the new financial year, CGX has options to defer your payment or offer your grain for sale in a future delivery period. There is strong demand for Australian grain and you can create demand for your grain by offering on CGX.

Do you want to sell but defer delivery and payment? Check our article to learn more.

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.