Weekly Grain Traded CGX - 19 May

Clear Grain Exchange
May 19
4 min read

Grain stored on-farm can now be sold on CGX

Reach for grain continued last week - Dry conditions remain in many areas and domestic end-users are bidding up to match grower target prices.
54 buyers met grower offer prices to purchase 34 grades - Wheat, barley, canola, chickpeas, lupins, and sorghum 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. — 54 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

54 buyers purchased grain on CGX - more were searching for grain
- 3 in QLD
- 19 in NSW
- 26 in VIC
- 13 in SA
- 16 in WA
185 sellers sold grain through CGX across 250 transactions - more were offering grain for sale
14 agent and/or advisory businesses sold grain on behalf of growers
34 different grades traded
6 commodities - Wheat, barley, canola, chickpeas, lupins, sorghum
14 port zones traded across QLD, NSW, VIC, SA and WA

Reach for grain widens on dry weather

The reach for grain continued last week as dry conditions remain in many areas across southern Australia.

Domestic users and traders are searching further and further away from their consumption points to try and find grain, and are more willing to widen the grades and quality they can accept.

This is being reflected in prices with South Australian and Victorian prices leading the nation, and prices trading at up-country sites or on-farm being above prices achieved at port in many cases.

For growers, this can make determining what your grain is worth a little harder than normal given the natural movement of grain isn't towards port this year, but rather priced to attract grain towards domestic end-user locations so grain doesn't leave Australia.

This provides an opportunity for growers to ask for the price they want and put it out there on offer so all buyers can see it, crunch their numbers, and determine whether it works for them.

Even if growers are not ready to sell at current prices, but do know they will sell the grain they have, there is value in offering that grain for sale at the price you would sell to help set the market and let buyers know it's there.

Domestic end-users are the main demand point rather than the export pathway which means the best price could come from a multitude of directions as domestic buyers reach for grain.

Domestic end-users are widening the drawing circle they will accumulate grain within this year given the dry conditions

Within Clear Grain Exchange and igrainX we're seeing many growers utilise the secure settlement function to defer grain payments until after June to manage cashflow. Some are offering grain for sale in future delivery months to manage cashflow, logistics, and benefit from carries being paid in domestic markets. While others are simply pricing in the added production risk in grain this year by moving their offer prices higher.

Plenty of buyers are looking for grain with 64 buyers bidding for grain last week and 116 buyers made 6,740 searches for grain listed for sale on Clear Grain Exchange and igrainX.

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

The price dynamic is reflected in ASW1 wheat trading $355/t track port in South Australia and Victoria last week versus $335/t in Newcastle and $361/t FIS port Western Australia.

Typically WA FIS would be priced $25-30/t above SA track at port if grain was being exported (ie. accounting for fobbing and sea freight).

Feed barley was trading $362/t Port Adelaide track equivalent as it gets pulled into upcountry homes versus $352/t Melbourne, $321/t Newcastle and $360/t WA.

Sorghum demand remains robust in the north trading $377/t Newcastle, while chickpeas managed $875/t Gladstone.

Canola was trading in earnest through Victoria, Southern NSW and South Australia, and lupins fetched $505/t FIS in the west.

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

The best way for growers to determine the price for their grain is to offer it for sale at the price they think it is worth or what they want for it. Let all buyers see the grain and try to buy it rather than waiting for bid prices from buyers and reacting to them, particularly when demand could come from various directions this year.

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

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.