Weekly Grain Traded CGX - 4 August

Grain stored on-farm can now be sold on CGX

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1. Growers selling into softer market - Growers were selling into weaker bids pushing Australian prices lower, contrary to international markets.

2. Australian grain more competitive for exports - Higher Black Sea prices, higher international freight rates, and weaker A$ should be making Australian grain more competitive globally.

3. 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.

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20 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.

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Market stats for last week

• 20 buyers purchased grain on CGX - more were searching for grain

  • 6 in NSW

  • 7 in VIC

  • 2 in SA

  • 1210in WA

• 50 sellers sold grain through CGX across 68 transactions - more were offering grain for sale

• 5 agent and/or advisory businesses sold grain on behalf of growers

• 17 different grades traded

• 6 commodities - Wheat, barley, canola, lentils, lupins, oats

• 7 port zones traded across NSW, VIC, SA and WA

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Softer prices as growers hit bids

Australian grain prices to growers were generally weaker last week as some rain being received in cropping areas improves confidence in the season.

The rain has coincided with increased monthly storage costs being incurred by growers holding grain in most warehouses and appears to have seen growers more willing to adjust their selling price expectations lower to sell some grain.

The combination of rain and grower selling has seen buyer bids soften and may have been amplified last week given many grain buyers were at the annual Australian Grain Industry Conference.

The movement in Australian grain markets is somewhat contrary to what's happening offshore.

Black Sea milling wheat prices have improved considerably over the last month as their growers hold off selling given they're reportedly unhappy with prices.

International freight rates have increased and our Australian dollar has weakened against the US dollar. These movements should make Australian grain more competitive into international markets.

Grower selling behaviour will impact Australian grain prices. Rather than selling grain into published bids and softening prices, growers could offer grain for sale closer to bids to hold values.

There are plenty of buyers that want Australian grain. There are consistently more than 100 buyer organisations searching for grain offered for sale on Clear Grain Exchange (warehoused grain) and igrainX (on-farm grain).

Growers have the opportunity to offer their grain for sale at the price they want and show all buyers.

Believe it or not, this simple action helps all buyers see your grain, crunch their numbers and try to price their bid at your sell levels. Offering grain for sale creates demand for your grain and helps to stabilise prices.

Grain sold last week through CGX and igrainX averaged $17.50/t above best published bids, some up to $116/t above.

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).

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.

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.

Click here to view recent trades and search the market

The charts below provide a summary of grain traded last week

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Click here to view recent trades and search the CGX market

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

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If you have any queries, we're always here to help!

Please give us a call or email if you have any questions.

Call 1800 000 410 or Email support@cgx.com.au