Weekly Grain Traded CGX - 12 May

Clear Grain Exchange
15 hours ago
4 min read

Grain stored on-farm can now be sold on CGX

Grower sale prices are setting the tone for price discovery - Buyers are bidding up to match grower target prices on scarcity in supply.
58 buyers met grower offer prices to purchase 37 grades - Wheat, barley, canola, faba beans, lentils, and lupins traded in 14 port zones.
CGX and igrainX 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 igrainX and determine pickup/delivery timeframes.

27 buyer businesses purchased grain through Clear Grain Exchange (CGX) last week. More buyers were searching for grain offered for sale. — 58 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.

Market stats for last week

58 buyers purchased grain on CGX - more were searching for grain
- 3 in QLD
- 26 in NSW
- 22 in VIC
- 15 in SA
- 17 in WA
238 sellers sold grain through CGX across 342 transactions - more were offering grain for sale
15 agent and/or advisory businesses sold grain on behalf of growers
37 different grades traded
6 commodities - Wheat, barley, canola, faba beans, lentils, lupins
14 port zones traded across QLD, NSW, VIC, SA and WA

Growers determining grain prices

Growers are determining Australian grain prices to a large extent currently.

Grower sale prices are setting the tone for price discovery in many parts of Australia with buyers bidding up to match grower asking prices and accumulate grain.

That's not to say buyers are able to pay any price growers are asking for, rather buyers are watching the sale prices growers set and adjusting their price expectations closer.

58 buyer businesses purchased grain stored in warehouse and on-farm through Clear Grain Exchange and igrainX just last week.

A total of 60 buyers bid for grain and 123 buyers made 7,973 searches for grain listed for sale on the exchange.

The reality of persistent dry conditions in many parts of Australia is seeing buyers searching further afield for grain, and widening the grain quality they'll consider.

Growers that have grain, have the ability to set price expectations in the market by offering their grain for sale to all buyers at the price they want.

Growers have been pulling prices higher in recent weeks by doing this as buyers try to determine the price grain will trade.

The number of buyers searching for grain is an indicator of demand, in this case demand is being underpinned by scarcity in supply.

There are plenty of buyers searching for Australian grain offered for sale.

South Australia is leading grain prices generally with ASW1 wheat trading $365/t track Pt Adelaide versus equivalent AWW1 wheat in Western Australia trading $360/t FIS Kwinana.

If all grain was exporting from SA and WA on a natural price spread basis (accounting for fobbing and sea freight) WA would typically be priced $25-30/t above SA.

The impact of the dry conditions then extends through grain prices across Victoria and up into NSW with ASW1 wheat trading $357/t track Pt Kembla versus $331/t in Newcastle and Brisbane.

NSW saw 26 different buyers purchase grain as the reach for grain expands north from the drier south eastern parts of Australia to draw grain into those areas.

Demand for feed grains are underpinning all prices with little in the way of price differences between many grades except for notably stronger prices for H1 and H2 in the west.

Feed barley is trading at or very close to wheat prices in most areas. Canola, faba beans, lentils and lupins were also trading.

Please login to your online account to see all prices traded and/or call our support team at anytime.

Growers are impacting the price of Australian grain by offering grain for sale and leading bids higher.

Grain stored on-farm continues to be sought after though there are many growers comfortable holding this grain as a drought hedge to cover their own needs if dry weather persists.

For growers wanting to sell grain on-farm, most are making sure their offers for sale on igrainX are for delivery from June-July onwards to ensure they can organise delivery into those sales after the seeding period.

Some growers have moved their offer prices higher to stay in the market but also reflecting that they're relatively content with the sales they already have on their books and so are targeting higher values at this stage.

Another trend in Clear Grain Exchange and igrainX is growers nominating to defer payments into July to manage cashflow, while others are offering to deliver their grain in July.

Let all buyers see your grain at the price you are a genuine seller as it helps attract more buyers to buy your grain and is the only way to determine it's true value.

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.