Oct 30, 2023

Weekly Grain Traded CGX - 30 October

CGX now own and operate the igrain market for grain stored on-farm

Grower selling is pushing prices lower - Grain is being sold into cash bids as it's being delivered, this is putting downward pressure on grain prices.
OFFER your grain at the price you want - Buyers want Australian grain, offer grain for sale at a price rather than pushing prices lower this harvest.
CGX and igrain enable growers to offer grain for sale - Growers delivering to warehouse can offer grain for sale on CGX that has been delivered or will be delivered in future months. Growers storing grain on-farm can offer grain for sale on igrain and determine pickup/delivery timeframes.

17 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.

Grain market statistics for last week

17 buyers purchased grain on CGX - more were searching for grain
55 sellers sold grain through CGX across 69 transactions - more were offering grain for sale
6 agent and/or advisory businesses sold grain on behalf of growers
12 different grades traded
4 commodities - wheat, barley, lupins, oats
11 port zones traded across QLD, NSW, VIC, SA and WA

Grower selling pushes prices lower

Harvest pressure on grain prices appears to be occurring again. Cash prices for some grades at delivery sites where harvest is progressing have fallen more than $10-$20/t within a week, or a day in some extreme cases.

Grain is being sold into cash bids advertised as it's being delivered. This is putting downward pressure on Australian grain prices.

Buyers generally appear comfortable being conservative on the prices they're bidding as they watch the harvest unfold and how growers behave in regards to their selling.

There is little incentive for a grain buyer to be aggressive on their bid given more supply will come online and growers may well sell at lower prices.

The point there is "growers may well sell at lower prices". Australian growers have a say in the price of grain!

Australian grain remains competitive into international markets, this means it does not need to get cheaper out of the southern export states to win export business.

The biggest factor to impact grain prices in the next month is likely how Australian growers sell their grain. If growers sell a lot of grain into published cash bids quickly, it will push prices lower.

But growers should know they can also OFFER their grain for sale at a price to ALL BUYERS. There are plenty of buyers that want your grain. There are more than 300 registered on CGX and igrain respectively.

For growers that are harvesting and delivering your grain into a third party warehouse system such as GrainCorp, you can offer that grain for sale on Clear Grain Exchange (CGX). CGX operates at 27 different grain storage operators - click here to see if CGX is operating at your site.

If you are storing grain on-farm this harvest, you can offer that grain for sale on igrain.

If you are not yet harvesting but intend to deliver or store grain, you can offer grain for sale for transfer or pick-up in a future month such as November, December or January.

The whole intent of CGX and igrain is to make it easier for you to set your price and get as many buyers as possible to try and buy your grain whilst ensuring you're protected by secure settlement for warehoused grain with CGX, and counterparty insurance for grain stored on-farm with igrain.

See what traded on CGX last week below. Wheat, barley, sorghum, lupins, oats, and faba beans traded on igrain last week on an ex-farm basis through VIC and NSW.

The tables below provide a summary of traded prices 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.