Jul 16

Weekly Grain Traded CGX - 15 July

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

Grain markets remained subdued last week - Buyers continued to pull price expectations lower and growers continued to target stronger values .
22 buyers met grower prices to purchase 22 grades - Wheat, barley, canola, and faba beans traded in 8 port zones across NSW, VIC, SA and WA.
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.

23 buyer businesses purchased grain through Clear Grain Exchange (CGX) last week. More buyers were searching for grain offered for sale. — 22 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

22 buyers purchased grain on CGX - more were searching for grain
41 sellers sold grain through CGX across 51 transactions - more were offering grain for sale
5 agent and/or advisory businesses sold grain on behalf of growers
22 different grades traded
4 commodities - Wheat, barley, canola, and faba beans
8 port zones traded across NSW, VIC, SA and WA

Grain markets subdued - OFFER

Australian grain markets remained relatively subdued last week as buyers continued to adjust price expectations lower and growers continued to target stronger values.

This meant trades of grain were sporadic as buyers searched for grain they needed, jumped in to bid on parcels that worked for them in specific locations, and then retreated to the side-lines again.

Demand is generally soft as buyers are only bidding on specific grain offers they need, but often those bids are at much stronger prices than published bids indicated in markets.

Barley made up the majority of grades trading last week through Clear Grain Exchange with feed barley trading $335/t Kwinana, $324/t Pt Adelaide, and $322/t Melbourne. Lower grade barley was also in demand in SA with BAR2 trading at no discount to BAR1, BAR3 traded $315/t Pt Adelaide. Malt grades continue to attract premiums when bid with MAXI1 trading $355/t Kwinana.

Barley stored on farm was also attracting interest through igrain with feed grade trading $310/t ex-farm Speed Victoria and $355/t ex-farm Wickepin WA.

Wheat grades made up 38% of all grain traded on CGX last week with ASW1 trading $350/t Pt Kembla and $340/t Melbourne. Higher protein milling grades continue to trade at better values with APH2 trading $440/t Newcastle, H1 and H2 trading $418/t and $375/t Kwinana respectively, and H2 trading $370/t Melbourne as examples. ANW2 traded $490/t Kwinana. Wheat stored on-farm was also trading through igrain with APW1 and ASW1 trading $335/t and $325/t up-country Victoria as examples.

Canola in warehouse traded $795/t Albany WA + oil bonification, with GM canola trading $750/t Kwinana and $672/t Melbourne + oil bonifications respectively.

The igrain exchange appears to be an effective method of generating demand for lupins stored on-farm with trades of $530/t ex-farm Riverina and West Wyalong NSW as examples.

Remember when selling through igrain growers can be protected with best in-class insurance for counterparty credit risk. When selling through Clear Grain Exchange every transaction is protected by secure settlement where-by sellers retain title of their grain until paid.

Growers have a say in the price of Australian grain. Show ALL BUYERS your sell price by offering it for sale on CGX or igrain.

Simply login to your CGX account to view all prices and determine what you think your grain is worth. If you need help using your CGX account, just call us. We're available anytime between 9am and 8:30pm AEST and happy to help!

There's no downside. Growers are protected at all times on CGX by remaining completely anonymous and retaining title of their grain until paid with CGX's secure settlement.

Many published "bid prices" have pulled back recently

Chart: Traded prices on CGX are dots versus best published bid lines.

Chart: Traded prices on CGX are dots versus best published bid lines - triangles are CGX trades at other sites within the same port zone worked back using GTA location differentials to equivalent prices at the site of the chart for comparison.

A summary of what traded on CGX last week is provided in the charts and table below. See more prices of what traded by logging in to your CGX or igrain accounts.

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.