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Grain Report Tuesday - 13th December



Our goal is to help growers and their agents determine the selling price for their grain by providing relevant price discovery each day. Check out the moves in overnight international markets and yesterday's actual traded prices across Australia. There's also market commentary giving context and comparisons to prices of international physical markets. If you need to change your offer price, simply edit it before market open.


What price do you want for your grain?

Chart including Wheat CBOT prices, Wheat Black Sea prices, Canola ICE prices and Canola MATIF prices

Grain trade prices for Australia Grain (wheat, barley, Sorghum, Lupins, Canola, Faba Beans, Oats, Chickpeas and lentils)

  • Wheat markets were up strongly last night, which dragged corn along.

  • Beans were unloved and fell away, which also resulted in Matif and Winnipeg canola softening as well.

  • Oilseeds feel like they are under a little bit of pressure.

  • The world canola balance sheet is heavier this year with world production up ~10 million tonnes to 84.341 million tonnes.

  • Consumption is also up 5 million tonnes and ending stocks up 2.5 million tonnes to 6.8 million tonnes.

  • Add to this, the world soybean crop is 35 million tonnes bigger this year to a record 391 million tonnes.


  • However, Canadian canola seed is currently trading at USD $680 FOB (free on board) Vancouver or around USD $730 CNF (cost & freight) Europe.

  • Port Kembla to Rotterdam is around USD $45 freight, so this works back to USD $685 FOB or a track value of AUD $970, which is around AUD $270 over the current track bids.

  • But, we have a huge canola crop, so that must be the reason we are so far under export parity?

  • Hang on, the Canadian canola crop is 19 million tonnes with exports of almost 8 million tonnes, which is 2.7 million tonnes more than Australian exports.

  • Does KFC use canola oil?


  • We should see the ASX Jan wheat contract get close to AUD $400 again today.

  • APW track markets are trading around the AUD $400 level on the East Coast and SA.

  • WA APW track is more like an AUD $465 level. Did someone regulate the WA grain market with only one buyer?


  • Good news for the WA growers if they have APW, but if I owned a boat, and more importantly a shipping slot, I would sail straight past WA and pull up at SA and load it at USD $300 FOB.

  • After a few beers and entertainment down the Rundle Mall, I would gather my drunk crew of pirates back together and sail to Asia and potentially sell it for USD $350 FOB equivalent, on paper making USD $50 PMT (per metric tonne) margin on a Panamax (60k).

  • After I pay a bit of demurrage, I could pocket up to AUD $3.58 million and retire to the Maldives. Or maybe I would bring my boat back and do a load of canola and make a lot more money.

Most importantly we're always here to help!

Please give us a call or email if you have any questions.


Call 1800 000 410 or Email support@cgx.com.au

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