Growers using exchange for forward sales

CGX national manager of business development Tom Guthrie says there are plenty of buyers wanting Australian grain right now.

Potentially an unknown strength of Clear Grain Exchange (CGX) is the ability to seek full value on new season grain through forward contracts.

With a potentially bumper crop across the nation and Australian grain remaining very competitive into international markets, the ability for growers to obtain full value for their crops to be harvested is becoming more important.

By offering new season grain for sale on CGX it allows growers access to all buyers, while maintaining the security of CGX’s secure settlement where growers retain title of grain until paid.

National manager of business development Tom Guthrie believes growers who are comfortable making forward sales of grain, should be making use of the exchange to ensure they’re selling at their grain’s full value.

‘There are plenty of buyers wanting Australian grain right now’ Mr Guthrie says.

‘Despite the historically high prices on offer for growers currently, Aussie grain is still very competitive into our export markets and likely to remain so well into the new year.’

Mr Guthrie explains that it’s important to encourage more buyers to participate in buying Aussie grain to ensure growers are getting what it’s worth.

‘By enabling all buyers to have the opportunity to try and purchase their grain, growers can make sure they’re selling to the buyer with the highest demand. The exchange provides an easy and secure way of doing this.’

The use of CGX as a method of forward sales by growers is growing as more become familiar with the online exchange and what it aims to do for them. Mr Guthrie suggests that if the exchange is used correctly there can be no downside in using it, on the contrary only upside.

‘It’s free to offer grain on the exchange and growers, or their agent, can edit or cancel their offer at any time before it sells so growers are in complete control in generating that value for themselves.’

‘We’ve been seeing more and more growers use CGX for forward sales which is great and there is plenty more value to be generated by more use.’

Mr Guthrie associates using the exchange to safeguarding a sustainable Australian grain industry into the future.

‘By growers offering grain at the level they want to sell at in an open market, it helps them get the price they want as often you don’t know what you don’t know, but also it encourages more buyers to try and participate in Australia.’

‘That’s a critical thing to ensure you get value for your grain, not just today but in the future as well.’

Managing director Nathan Cattle is encouraged by the increased use of CGX for forward sales and says the exchange is investing further to enhance the offering.

‘It’s good to see growers using the exchange to generate the real price for their forward sales. We’re developing the technology further to create more efficiencies and benefits to users, and we look forward to releasing those in the not-too-distant future.’

There can only be upside when using CGX to sell your grain.

• Set THE PRICE YOU WANT for your grain

• ALL BUYERS can then see your grain and try to purchase it

• Be confident that FULL VALUE is captured when your grain sells

• SECURE SETTLEMENT means you retain title until payment

• Fast payment WITHIN 7 BUSINESS DAYS of delivery

• EASY TO USE and FREE to Register, OFFER or Edit, at anytime

Please contact us at anytime by calling 1800 000 410, or connecting with us on Twitter @ClearGrain

If you use a grain marketing agent, you can authorise them to act on your behalf on the exchange to manage your offers and sales!

Elders own 30% of CGX. That means the more you use the exchange, the more you support your local Australian owned Elders branch.