Weekly Grain Traded CGX - 06 March
Grain demand more selective - Buyers are searching for grain offered for sale, crunching their numbers, and often bidding above published bids.
You can sell July delivery contracts on CGX - If you want to lock in a price but defer delivery and payment until future months you can on CGX.
There is plenty of demand for Australian grain - If you have grain in warehouse, make sure you offer it for sale - no matter what price.
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
35 buyers purchased grain on CGX - more were searching for grain
12 in NSW
5 in VIC
1 in QLD
10 in SA
17 in WA
215 sellers sold grain on CGX with more offering grain for sale
16 agent and/or advisory businesses sold grain on behalf of growers
32 different grades traded
7 commodities traded - wheat, barley, canola, oats, lupins, lentils, faba beans
14 port zones traded across QLD, NSW, VIC, SA and WA
Grain demand more selective
Demand for Australian grain has become more selective during the last two weeks. International wheat futures have created a downward lead for global cash prices more recently which has been pulling values lower. Thankfully Australian grain appears to remain competitive into global physical markets and so prices here have been able to hold relative to weakening futures. WA grain appears to be priced the most competitive followed by SA and then the east coast with reports many grades out of the eastern states have become difficult to make work given the higher risk and costs associated with internal logistics. The result is buyers of Australian grain have become more cautious and are searching grain offered for sale, crunching their numbers and bidding for those parcels they can make work. This has seen strong demand for particular grades in specific locations, albeit that it can be less predictable for growers and their agents. By having your grain offered for sale on CGX it makes it easier for buyers to see your grain, crunch their numbers and try to make it work. It helps create demand for your grain! The result is often grain trades at better prices than you may realise are available, and often to more buyers than you may think exist! 35 different buyers purchased 32 grades of wheat, barley, canola, oats, lupins, lentils and faba beans last week - more were searching for grain offered for sale. Create demand for your grain and offer it for sale at the price you want, whilst being protected by anonymity and secure settlement. See charts below of what traded last week. For a more comprehensive view of what traded + bids and offers in the market, simply login to your CGX account.
Do you want to sell but defer delivery and payment?
For growers who want to defer delivery and payment of their grain, you can offer grain at the price you want for delivery in future months.
For example, many growers use the future delivery period on CGX to offer warehoused grain for sale with delivery in July. This allows growers to better manage cashflow, price risk, and benefit from any carry that may be paid in the market.
Remember when you sell grain through CGX you retain title of your grain until you're paid thanks to the SECURE SETTLEMENT.
The charts below provide a summary of grain traded last week
Most importantly we're always here to help!
Please give us a call or email if you have any questions.
New website - same great service
Call 1800 000 410 or Email support@cgx.com.au
Comments