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Grain Report Wednesday - 21st 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 and corn markets were up slightly last night.

  • It's all a bit quiet overseas as they wind down heading into Christmas (am I allowed to say Christmas anymore?)

  • Beans had a little bit more strength after a guru dropped Argie soybean production to 45 Million MT. The USDA forecast Argie to produce 49.5 million mt.

  • However, the same guru kept the Argie corn crop at the same forecast.

  • There is much needed rain forecast for Argentina, which has the market relaxing a little bit. However, some are now saying the forecast is overhyped and is not enough.

  • South American corn is important to the world corn supply and demand, which is a much tighter balance sheet than the wheat supply and demand balance sheet.

  • A disruption in corn production causes higher corn prices which results in wheat being fed to animals, which tightens the wheat balance sheet and drives up wheat prices.


  • In other news, the barley market on the East coast is firming, with bids up $10 - $15 this week.

  • Kaboom, an opportunity to move offers up. Has Penny Wong announced anything yet?

  • I mentioned yesterday the spread between SFW and BAR1 was too wide from a nutritional perspective, but also the price difference to export barley was greater than SFW wheat, so load the boats with barley.

  • NOTE: In yesterday’s comments the price differences for exporting barley, SFW and ASW was reported in USD when they were actually AUD. So, to export SFW on the East Coast the difference is around AUD $30 and barely AUD $70.

  • In the West, the export difference for ASW is around AUD $100 versus barley at AUD $110, based on Russian values being the market bottom.

  • I am bullish barley on the East Coast for several reasons: a tight supply and demand, export price differences, EU drought and increased feeding, and loss of BAR1 to BAR2 and lower grades.

  • If I am not correct on this view, I will probably be wrong, which makes me either an economist, a meteorologist, or the head of the Reserve bank.


  • We are starting to see some new grades of wheat introduced to cater for the increased presence of White Grain Disorder / Head Scab.

  • I asked an old colleague, experienced in this field, whether it would kill a cow?

  • He responded with “only if it’s in a B-double truck and it hit the cow”

  • Hence, we have decided to only deliver this new grade in single trucks.

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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