Weekly Grain Traded CGX - 28 July

Clear Grain Exchange
Jul 28
4 min read

Grain stored on-farm can now be sold on CGX

Flat markets still provide opportunity - Grain sold averaged $9.98/t above best published bids last week, some up to $72/t above.
100 buyers searched warehouse and on-farm grain for sale last week - 23 grades of wheat, barley, canola, lupins and oats sold to 31 buyers that met grower prices indicating 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. — 31 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

31 buyers purchased grain on CGX - more were searching for grain
- 3 in QLD
- 11 in NSW
- 13 in VIC
- 2 in SA
- 12 in WA
67 sellers sold grain through CGX across 81 transactions - more were offering grain for sale
7 agent and/or advisory businesses sold grain on behalf of growers
23 different grades traded
5 commodities - Wheat, barley, canola, lupins, oats
10 port zones traded across QLD, NSW, VIC, SA and WA

Flat markets still provide opportunity

Many Australian grain markets have been relatively flat in recent weeks with pockets of sporadic demand enabling growers to sell at prices they want.

Grower sell prices are generally a bit higher than where buyers are bidding on most days, however at times market movements are enabling buyers to push prices higher to meet grower expectations and purchase grain.

The lift in demand and prices has been hard to predict and is often fleeting where-by buyers push prices up to buy and then retreat to the side-lines again.

On the demand side of markets, domestic demand remains robust with feed end-users maintaining predominately a hand-to-mouth approach to buying, meaning they're regularly in the market looking for grain offered for sale that may work.

Domestic miller and maltster end-user demand can be more selective and opportunistic with a lot of their yearly requirements already secured around the harvest months when the specific grades they needed were more available. However we are seeing these operators bidding up for certain quality grains through the year as they search for grain that can compliment the quality they have.

Export demand has been more difficult for wheat this year, however other commodities such as barley, canola and pulses have had many opportunities to create prices that satisfied grower expectations.

On the wheat export job, currently black sea prices are improving during their harvest on supply tightness which appears to be seeing some more nearby demand swinging to Australia.

This may provide more opportunity for Australian growers to price wheat at values they're targeting, so make sure if you're holding grain, offer it for sale to create these pricing opportunities.

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.

Grain sold last week through CGX and igrainX averaged $9.98/t above best published bids, some up to $72/t above.

There are plenty of buyers that want Australian grain. Just last week 36 buyers bid for grain offered for sale on the exchange, and a total of 100 buyers made 4,403 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 62% of all grain traded through CGX (warehouse) and igrainX (on-farm).

APW1 wheat was trading $349/t port track equivalent Pt Kembla and $360/t FIS Kwinana. ASW1 was trading $339/t Kembla and $362/t Esperance. APH2 was attracting much stronger prices to APW1 in Brisbane and Newcastle zones.

Feed barley was trading $347/t Melbourne, $336/t Pt Adelaide and $345/t Kwinana.

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.

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.

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.