Weekly Grain Traded CGX - 2 June

Clear Grain Exchange
Jun 2
4 min read

Grain stored on-farm can now be sold on CGX

Many grain buyers take stock - Many buyers opted to take stock of positions last week rather than chasing grain and push prices higher.
41 buyers met grower offer prices to purchase 24 grades - Wheat, barley, canola, faba beans, lentils, lupins, and peas traded in 13 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. — 41 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

41 buyers purchased grain on CGX - more were searching for grain
- 13 in NSW and QLD
- 11 in VIC
- 11 in SA
- 10 in WA
78 sellers sold grain through CGX across 101 transactions - more were offering grain for sale
12 agent and/or advisory businesses sold grain on behalf of growers
24 different grades traded
7 commodities - Wheat, barley, canola, faba beans, lentils, lupins, peas
13 port zones traded across QLD, NSW, VIC, SA and WA

Many grain buyers take stock

Many buyers opted to take stock of their positions last week rather than continuing to chase grain and push prices higher.

Australian grain is pricing itself out of many export markets at current levels and while there is significant uncertainty over the size of this year's Australian crop, many buyers have some cover and resolved to watch the weather forecasts for a bit.

Growers are also watching weather forecasts and determining they're ok to hold grain if their price isn't achieved for the moment.

This dynamic led to a lot of search, bid and offer activity from buyers, growers and their agents in Clear Grain Exchange and igrainX last week, though bid and offer prices often struggled to come together to trade.

In saying that 78 different selling businesses sold 24 grades of wheat, barley, canola, faba beans, lentils, lupins and peas to 41 different buyers last week with grain trading in all states.

The spread of volume traded was also relatively consistent across all states indicating prices can work across export and domestic markets.

Victorian prices caught up to South Australian prices across wheat and barley at a port track level, and Port Kembla was also trading up near Victorian levels.

Prices at upcountry storage locations continue to trade at premiums to prices at port in south-eastern Australia as the pull for grain is trying to keep it for domestic use.

Clear Grain Exchange and igrainX provides valuable price discovery for industry as growers and buyers try to determine it's value given grain is flowing in different directions.

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 to help you determine the value of grain in your area.

You can also call the CGX team at anytime for assistance on 1800 000 410.

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

Many growers have offered grain for sale with July delivery, or simply delivery now with July payment given we're close to the middle of the year.

Buyers have demand for grain being delivered in future months with 13% of trades having the delivery period nominated for upcoming months and buyers are actively bidding in future months.

Growers have a say in the price of grain and can benefit the industry by having it offered for sale at the price they're seeking so all buyers can see it, crunch their numbers and try to buy it.

Plenty of buyers are looking for grain with 50 buyers bidding for grain last week and 122 buyers made 4,892 searches for grain listed for sale on Clear Grain Exchange and igrainX.

There are plenty of buyers searching, bidding and buying grain stored on-farm also with those prices not presented in the tables below yet as it's not as simple to convert them to a port equivalent for comparison, we are working on this. In the interim, login to your CGX account to see bids/offers/trades for grain stored on-farm.

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.

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.