Feb 12

Weekly Grain Traded CGX - 12 February

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

Large price differences for grain exists between states - There is a stronger price signal from sellers in WA and WA prices are above other states.
29 buyers met grower target prices to purchase 36 grades of wheat, barley, canola, faba beans, lentils, lupins and oats in 12 port zones.
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.

29 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

29 buyers purchased grain on CGX - more were searching for grain
6 in NSW
9 in VIC
9 in SA
17 in WA
240 sellers sold grain through CGX across 319 transactions - more were offering grain for sale
13 agent and/or advisory businesses sold grain on behalf of growers
36 different grades traded
7 commodities - wheat, barley, canola, faba beans, lentils, lupins, oats
12 port zones traded across NSW, VIC, SA and WA

Price differences between states

Price differences across port zones for the same grades of grain remained last week.

ASW1 wheat as an example was trading in volume at $400/t FIS in Western Australia along with other more similar quality grades such as ASW9, AUS9 and AWWT.

In other parts of Australia ASW1 traded $360/t port track in Port Kembla, $350/t in Port Adelaide and $330/t in Melbourne.

The natural price spread you'd expect to see between WA and eastern states port zones is in the vicinity of $25-30/t, reflecting supply chain costs and additional bulk freight.

Eastern states port zones are trading below natural spreads to WA, however in smaller volumes implying growers in those zones are holding out for better prices.

Grain that was trading on CGX was often at better prices than those advertised by published bids (see charts below for examples).

Growers have a say in the price of grain and interestingly the largest volumes of grain offered for sale and largest number of offers on the exchange is in WA.

The more grain buyers can see at grower sell prices, the more impact it is likely to have on the price, because the price signal from sellers is stronger.

WA growers are actively offering grain for sale at the price they feel it's valued, or where they would be a willing seller, and it's resulting in buyer demand and trades.

The amount of grain to be exported and consumed domestically this year has not yet been bought from growers and buyers are actively searching the market to fill their requirements.

The charts below provide examples of the value growers receive by OFFERING their grain at their price to ALL BUYERS.

If your grain is not offered for sale it can't sell and you won't know if there are buyers willing to pay the price you want.

29 buyers purchased 36 grades of wheat, barley, canola, faba beans, lentils, lupins and oats on CGX last week, with more buyers searching grain offered for sale.

ASW1 wheat trading at GrainCorp's Milvale warehouse site

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

The tables below provide a summary of traded prices on CGX between 05 Feb and 12 Feb.

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.