Weekly Grain Traded CGX - 26 May

Clear Grain Exchange
May 26
4 min read

Grain stored on-farm can now be sold on CGX

Reach for grain softened a little last week - Some buyers adopted a wait and see approach in the search for grain with some rain about.
42 buyers met grower offer prices to purchase 30 grades - Wheat, barley, canola, lentils, and lupins traded in 12 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. — 42 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

42 buyers purchased grain on CGX - more were searching for grain
- 12 in NSW and QLD
- 11 in VIC
- 12 in SA
- 15 in WA
109 sellers sold grain through CGX across 140 transactions - more were offering grain for sale
14 agent and/or advisory businesses sold grain on behalf of growers
30 different grades traded
5 commodities - Wheat, barley, canola, lentils, lupins
12 port zones traded across QLD, NSW, VIC, SA and WA

Some rain impacted markets

The reach for grain softened a little last week in some areas where rain was received. Some buyers adopted a wait and see approach rather than continuing to push domestic prices higher in the search for grain.

Some growers were more willing to engage the market and meet buyers bids to sell, while others were more comfortable setting a firm price for buyers to see.

Many growers were offering 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 15% of trades having the delivery period nominated for upcoming months and buyers are actively bidding in future months.

Grain needs to stay in Australia to service domestic use and buyers have been bidding over export values in the south east of Australia to ensure this happens.

Dry conditions have also seen domestic users and traders searching further away from their consumption points to try and find grain, and are more willing to widen the grades and quality they can accept.

It means 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.

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

Plenty of buyers are looking for grain with 54 buyers bidding for grain last week and 114 buyers made 5,585 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.

South Australia continues to trade at premiums to other states given the concerns over production. ASW1 wheat traded $362/t Pt Adelaide as an example versus $345/t Melbourne and Pt Kembla.

AWW1 in the West, an equivalent grade to ASW1 was trading $362/t Kwinana. 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).

Barley remains in demand making up 40% of all grain traded through the exchange last week and is reported to still be winning export business.

Barley grades were trading above wheat values through Victoria with feed barley trading $353/t Port Track equivalent out of warehouse sites in the Geelong zone last week (above ASW1 wheat). In many other areas of Australia barley was trading at the same prices as wheat.

Canola, lentils and lupins were also trading with buyers also searching and bidding for other grains such as sorghum, peas, faba beans and oats.

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.

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.