Weekly Grain Traded CGX - 21 July

Clear Grain Exchange
Jul 22
4 min read

Grain stored on-farm can now be sold on CGX

Grain prices are jumping around creating opportunity - Grain sold averaged $9.16/t above best published bids, some up to $60/t above.
104 buyers searched warehouse and on-farm grain for sale last week - 27 grades of wheat, barley, canola, lentils, lupins and oats sold to 29 buyers that met grower prices indicating the breadth of demand.
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. — 29 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

29 buyers purchased grain on CGX - more were searching for grain
- 9 in NSW and QLD
- 10 in VIC
- 4 in SA
- 13 in WA
84 sellers sold grain through CGX across 112 transactions - more were offering grain for sale
9 agent and/or advisory businesses sold grain on behalf of growers
27 different grades traded
6 commodities - Wheat, barley, canola, lentils, lupins, oats
12 port zones traded across QLD, NSW, VIC, SA and WA

Prices jumping around

Grain prices are jumping around and hard to predict day-to-day currently across grades and locations.

More growers achieved their sell prices for grain stored in warehouse and on-farm last week through the exchange across wheat, barley, canola, lentils, lupins and oat grades.

Though demand has been a little hard to predict with many buyers somewhat reactive to current market dynamics opting for a hand-to-mouth or buy as they need approach.

Australian domestic demand for grain remains robust and consistent while international export demand for Australian grain has been more opportunistic.

The northern hemisphere winter wheat harvest is underway and importers have turned attention to supply from the major exporters harvesting.

Interestingly however, international analysts Argus and S&P Platts report Black Sea wheat prices have climbed over US$10/t in recent days which shifts demand to other origins around the globe.

Movements like this can provide opportunities for our Australian exporters to lift prices and meet growers expectations to accumulate grain, but they can be momentary.

If buyers are not confident they can accumulate the grain from Australian growers, the opportunity to participate in export demand may not eventuate at all and our industry is lesser for it.

By growers offering grain for sale and showing all buyers the prices they would sell for it enables buyers to do what they are there to do, try and find homes for Australian grain.

This creates more, and better, opportunities for Australian growers to price grain.

There are plenty of buyers that want Australian grain. Just last week 38 buyers bid for grain offered for sale on the exchange, and a total of 104 buyers made 4,515 searches for grain.

Growers that offered their grain for sale, created opportunity for all buyers to try and buy their grain at their price.

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

Last week saw wheat grades make up 80% of all grain traded through CGX (warehouse) and igrainX (on-farm) which aligns with volumes being held by growers across Australia.

APW1 wheat was trading $347/t port track equivalent Pt Adelaide, $337/t Pt Kembla and Melbourne, and $360/t FIS Kwinana. Most grades in the west are trading at similar numbers except noodle which traded $420/t. There are also limited price spreads between grades in the eastern states though higher protein H2 and the like can attract better values.

Barley prices are trading above wheat across South Australia and Victorian port zones and at similar levels in Western Australia.

Canola continues to find homes at often surprising prices then what growers thought was available. It provides regular extreme examples of intermittent and unpredictable demand creating opportunity for growers, similar for lentils, lupins and oats.

All growers should be offering grain for sale on an independent exchange and helping to set market prices rather than sitting on the side-lines and reacting to prices buyers advertise.

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

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

Growers can create demand for their grain! The simple act of offering grain for sale creates so much value for growers and the grains industry.

There's no downside and your grain regularly sells at prices growers and their agents didn't know existed.

The intent of CGX is 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 as many buyers as possible trying to buy your grain, not just for this season, but for future seasons creating a more sustainable industry for growers.

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.

You can also 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.