Weekly Grain Traded CGX - 17 November

Clear Grain Exchange
Nov 18
4 min read

Grain stored on-farm can now be sold on CGX

Growers navigating grain sales this harvest - Most growers grow more than one type of grain and grade, the opportunity for growers is to focus any sales on the grades in demand.
Deliver and OFFER grain for sale - Growers can frame the market by offering grain for sale at their sell prices versus all buyer bid prices.
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. — 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.

Market stats for last week

28 buyers purchased grain on CGX - more were searching for grain
- 4 in QLD
- 9 in NSW
- 7 in VIC
- 5 in SA
- 9 in WA
69 sellers sold grain through CGX across 85 transactions - more were offering grain for sale
6 agent and/or advisory businesses sold grain on behalf of growers
20 different grades traded
6 commodities - Wheat, barley, canola, lentils, lupins, maize
12 port zones traded across QLD, NSW, VIC, SA and WA

Navigating grain sales this harvest

Most grain growers across Australia grow more than one type of grain, and often deliver various grades of each grain they grow.

The power in this for growers is that they have a portfolio of grades when looking to sell, and often there is one or more of those grades in demand with buyer appetite and higher prices at any time relative to other grades.

Last week volumes trading through CGX were canola, barley, and better quality wheats.

Canola and barley are dominating the shipping stems indicating a focus by exporters on those grades and resulting demand. Higher protein milling wheats are regularly sought after during harvest by millers requiring specific quality grains.

Whether growers are selling a grade that appears to be in demand or holding grain for selling in the future, they should still be offering grain for sale at a price to all buyers rather than hitting cash bids.

For grain that’s in demand, offering grain for sale helps growers establish its true price by enabling all buyers to bid over each other so the buyer with the highest demand gets the grain.

For grain that growers plan to sell in the future, offering grain for sale at a higher price helps show all buyers grower’s sell prices, keeps buyers interested, and helps to support grain prices.

Offering grain for sale is not about selling for better prices than best published bids, it's about impacting all bids from all buyers, including those published bids advertised on cash boards.

Growers have opportunity to frame the market by offering grain for sale at their sell prices versus all buyer bid prices.

That's why CGX displays published bids, including bid prices on cash boards across Australia, in your online CGX account. To help growers set their price.

If looking to sell grain now, offer close to or at bid price levels to sell your grain. If you’re not satisfied with bids and can hold grain, list your grain for sale at the higher price you’re targeting.

Growers can help avoid downward price pressure at harvest by offering grain for sale.

A number of grain prices have improved since the beginning of harvest with published bids of numerous wheat grades in the north east of Australia improving $15-20/t over recent weeks.

Prices for many grades in other parts of the country where harvest is less advanced have been holding though with more modest gains generally.

The improvement reflects buyers wanting grain and growers broadly not yet comfortable with prices to sell in earnest, although there have been examples where heavy grower selling has seen prices drop quickly and significantly.

There is demand for Australian grain with the world expecting Australia to supply a large part of the Asian grain demand.

How Australian growers sell their grain is having an impact on prices here and globally. Sell a lot of grain quickly into cheaper and cheaper bid prices and it pushes prices lower. Offer grain for sale against bids and show buyers the sell prices of growers and it can stabilise and improve values.

Rather than delivering and selling by hitting cash bids, deliver and offer grain for sale at your price and help set the market.

There are plenty of buyers for Australian grain, make it easier for them to try and buy your grain.

Last week 20 grades of wheat, barley, canola, lentils, lupins, and maize traded with 28 buyers purchasing and 35 buyers bidding for grain through Clear Grain Exchange (grain stored in warehouse) and igrainX (grain stored on-farm). 118 buyers made 3,721 searches for grain offered for sale.

The prices traded through the exchange at a port track (eastern states) or FIS (in WA) level are provided below, but if you're reading this email you will have your own CGX account so login and use it to see what's trading, what's offered, and what's being bid at sites to help you determine the value of grain in your area.

Australian grain is needed by the world and international buyers are turning their attention towards Australian price expectations.

The opportunity for Australian growers is to show them prices they would sell for as early as possible to help impact those price expectations.

If you’re harvesting or close to harvest and comfortable some of your production is assured, now’s the time to offer some grain for sale for all buyers to see.

That's how you create demand for grain and establish your grain's true value.

Please call the CGX team at anytime for assistance on 1800 000 410.

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.