Jun 17

Weekly Grain Traded CGX - 17 June

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

Buyers taking a more conservative approach - The price spread between bid and offer prices has widened generally as bids pull back.
25 buyers met grower prices to purchase 19 grades - Wheat, barley, canola, faba beans, lentils, and lupins traded in 11 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.

25 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

25 buyers purchased grain on CGX - more were searching for grain
3 in NSW
5 in VIC
6 in SA
13 in WA
46 sellers sold grain through CGX across 59 transactions - more were offering grain for sale
9 agent and/or advisory businesses sold grain on behalf of growers
19 different grades traded
6 commodities - Wheat, barley, canola, faba beans, lentils, and lupins
11 port zones traded across NSW, VIC, SA and WA

Buyers more conservative

Last week saw the lowest number of buyers match grower offer prices to purchase grain through Clear Grain Exchange (CGX) in 24 weeks.

This reflected buyers pulling their bids lower while growers generally held their price targets at higher levels given many have made sales and are able to be patient.

Interestingly the number of buyers searching for grain offered on the exchange remained high at 108, with a total of 4,000 searches made for grain.

This suggests there was still significant interest from the buy side in purchasing grain, but they weren't able to match grower price expectations to trade.

Hence the spread between bids and offers in grain markets, or buyers prices versus sellers prices, has widened recently.

The rally in international grain prices through April/May has also stalled as winter wheat harvests in the the northern hemisphere get underway.

There hasn't been any news of significantly improved crop conditions, however the fact that some supply is about to hit the market may be making buyers more comfortable to wait and assess what growers do rather than continue to push bids higher for the moment.

Grain was still trading last week through both CGX for warehoused grain and igrain for grain stored on-farm as some buyers closed the price spread to match offers and secure grain, albeit that trade volumes were lower.

The retraction in bid prices appear to be steeper in the eastern states. This may be a consequence of some better weather conditions and/or less grain offered on the exchange in those areas.

Growers have a say in the price of Australian grain. They can show ALL BUYERS their sell price by offering it for sale on CGX or igrain.

States with the highest volume of grain on offer, and the strongest sell price signal to buyers, have generally traded at higher relative values!

Last week ASW1 wheat traded $350/t track Melbourne and $411/t in Kwinana as an example.

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!

It's easy to use, and grain is regularly trading at better prices than you may otherwise have thought were available (see charts below). You set the price. You create demand for your grain!

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 prices have improved in recent weeks

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.