Weekly Grain Traded CGX - 18 August

Grain stored on-farm can now be sold on CGX

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1. Bids retreated but traded prices held - Buyer bids retreated generally but growers held their offers and buyers matched in many instances.

2. Many growers achieved their price - Grain sold last week averaged $8.92/t above best published bids and up to $33/t above.

3. 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.

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21 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.

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Market stats for last week

• 21 buyers purchased grain on CGX - more were searching for grain

  • 7 in NSW

  • 5 in VIC

  • 5 in SA

  • 9 in WA

• 65 sellers sold grain through CGX across 89 transactions - more were offering grain for sale

• 7 agent and/or advisory businesses sold grain on behalf of growers

• 21 different grades traded

• 7 commodities - Wheat, barley, canola, lentils, lupins, maize, oats

• 9 port zones traded across NSW, VIC, SA and WA

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Offers working in subdued demand

Buyer advertised published bids retreated lower for many grades and commodities through last week however grain was trading at higher levels as growers generally held their offer prices.

Overall buyer demand was more subdued than the previous week as bids pulled back. However, there were pockets of strong demand, where buyers lifted their bids to match grower offers and secure grain.

There has been a significant improvement in the competitiveness of Australian wheat into international markets recently due to a lift in Black Sea prices and higher shipping rates.

However international importers are still expecting the flow of grain from northern hemisphere exporters to increase in coming months. Similarly Australian domestic consumers are now more comfortable in the production prospects of the Australian crop.

This has led to a relatively patient stance from Australian buyers of both export and domestic use and seeing them buy as they need or when they can make an international sale work.

In saying that, both global importers and domestic users still require more grain and are stepping in to purchase as they require. This is providing opportunity for growers that have proactively offered their grain for sale to achieve the price they want.

This was happening on Clear Grain Exchange (grain stored in warehouse) and igrainX (grain stored on-farm) last week.

Grain sold last week through Clear Grain Exchange and igrainX averaged $8.92/t above best published bids. AUH2 wheat was selling up to $33/t over best advertised published bids from buyers in SA.

21 different grades of wheat, barley, canola, lentils, lupins, maize and oats traded across 9 port zones around Australia demonstrating the breadth of demand for grain.

If you have grain for sale stored either in warehouse or on-farm, there is no downside in offering it for sale on the exchange, it costs nothing to do so, and by having it offered for sale every buyer can see it crunch their numbers and try to buy it.

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

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

There are plenty of buyers that want Australian grain. There are consistently more than 100 buyer organisations searching for grain offered for sale on Clear Grain Exchange (warehoused grain) and igrainX (on-farm grain).

Grower selling behaviour will impact Australian grain prices. Rather than selling grain into published bids and softening prices, growers can offer grain for sale closer to bids to hold values.

This simple action helps all buyers see your grain, crunch their numbers and try to price their bid at your sell levels.

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

The prices traded through the exchange at a port track 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.

The more Australian growers offering grain for sale, the greater say growers have on the price grain trades!

The intent of CGX is to try and get as many buyers as possible to try and buy growers grain, and growers can control this by offering grain for sale.

That's how you get more buyers trying to buy your grain, not just for this season, but for future seasons creating a more sustainable industry for growers.

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.

Click here to view recent trades and search the market

The charts below provide a summary of grain traded last week

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Click here to view recent trades and search the CGX market

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

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If you have any queries, we're always here to help!

Please give us a call or email if you have any questions.

Call 1800 000 410 or Email support@cgx.com.au