Mar 5

Weekly Grain Traded CGX - 04 March

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

Price discovery for grains a challenge - Price disparities between traded prices and published bids, and port zones are challenging for market participants.
30 buyers met grower target prices to purchase 22 grades of wheat, barley, canola, lentils, oats and sorghum across 12 port zones around Australia.
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.

30 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

30 buyers purchased grain on CGX - more were searching for grain
9 in NSW & QLD
5 in VIC
7 in SA
15 in WA
79 sellers sold grain through CGX across 106 transactions - more were offering grain for sale
10 agent and/or advisory businesses sold grain on behalf of growers
22 different grades traded
5 commodities - wheat, barley, canola, lentils, oats, sorghum
12 port zones traded across QLD, NSW, VIC, SA and WA

Price discovery challenging

Price discovery for many grades of grain is proving challenging with large fluctuations in published bids and traded prices across port zones week-to-week.

For example, ASW1 wheat traded $402/t in Kwinana port zone the week before last, and then traded $380/t a week later (last week) through Clear Grain Exchange.

Best published bids collected by sources including Profarmer and DailyGrain were $375/t and $365/t respectively on the same days (refer chart below).

If you extrapolate this out across the total spectrum of grades and locations that trade on Clear Grain Exchange, there's been similar high levels of price disparity.

That's challenging for market participants trying to figure out the value of grain.

Some grades and locations appeared to have found a level to trade last week, particularly for grain stored on-farm with igrain trading some volume.

For growers with grain either on-farm or in warehouse, the way to send your price signal and discover it's true value is by offering it for sale to all buyers.

30 buyers purchased 22 grades of wheat, barley, canola, lentils, oats and sorghum through the exchange across 12 port zones in all the major grain growing states of Australia.

Plenty of buyers are actively searching, bidding, and purchasing grain offered for sale despite the recent weakness in published bids.

If your grain is not on OFFER at the price you want, it can't sell. Buyers need to see your grain to crunch their numbers and try to buy it.

Remember, you're anonymous and protected by secure settlement if your grain sells through Clear Grain Exchange, and your grain can only sell at, or above, the price you offer it for sale.

The charts below show the power of growers offering their grain for sale to create demand, with grain regularly trading at better prices than published bids indicate.

ASW1 wheat prices at GrainCorp's Mirrool site in Port Kembla zone

ASW1 wheat prices in the Kwinana zone of CBH's warehouse system

ASW1 wheat prices in the Kwinana zone of CBH's warehouse system

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.