Weekly Grain Traded CGX - 4 November

Clear Grain Exchange
2 days ago
5 min read

Grain stored on-farm can now be sold on CGX

New and old season prices converging - As harvest pace picks up, the premium old season prices were achieving is dwindling - what's happening?
Deliver and OFFER grain for sale - Rather than simply selling by hitting cash bids, growers can deliver and offer grain for sale to all buyers at their prices.
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. — 25 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

30 buyers purchased grain on CGX - more were searching for grain
- 2 in QLD
- 13 in NSW
- 11 in VIC
- 2 in SA
- 13 in WA
78 sellers sold grain through CGX across 101 transactions - more were offering grain for sale
5 agent and/or advisory businesses sold grain on behalf of growers
23 different grades traded
8 commodities - Wheat, barley, canola, chickpeas, lupins, maize, oats, triticale
11 port zones traded across QLD, NSW, VIC, SA and WA

New and Old season prices converging

New season prices for crop being harvested or about to be harvested, and old season prices for last year's crop are starting to converge.

Old season prices had been trading at reasonably higher prices than current season reflecting two things:

A lack of new season trading as buyers remained patient and hesitant to be aggressive in their bid prices in anticipation of grower selling. Growers on the other hand have wanted better prices however have not yet been forthcoming in earnest on disclosing those sell prices to buyers.
Old season crop has traded, and at levels above new season as both domestic buyers that needed more cover, and exporters with early shipping slots wanting some certainty, bid up closer to grower sell targets to secure grain.

The result was new crop prices being largely determined by buyer advertised bids rather than grower offers, and buyers not willing to increase bids in fear of setting the market price higher.

While old crop prices were determined by a more balanced market of buyer bids and grower offer prices and trading at better values.

Harvest is ramping up quickly in north eastern areas of Australia and how growers sell their grain as it comes into storage will have a large impact on prices.

If Australian growers sell into buyer bid prices in earnest as headers get rolling, it will pressure prices lower. If Australian growers offer their grain for sale at prices as they deliver, it will help stabilise and impact prices.

With many new crop grain prices struggling to find a level satisfying both buyers and sellers to trade volume, growers should know that how they sell their grain this harvest will impact prices.

Rather than delivering and selling by hitting cash bids, DELIVER AND OFFER grain for sale at your price and help set the market.

Growers can help avoid downward price pressure at harvest by offering grain for sale.

Buyers knowing the price you're willing to sell for helps them do their job and results in more value created.

Australian grain is needed by the world and international buyers are turning their attention towards Australian price expectations.

The opportunity for Australian growers is to show them prices they would sell for as early as possible to help impact those price expectations.

Canola is being spoken about as the "cash crop", meaning the crop growers are selling, or expecting to sell, to generate cash flow, with barley also considered.

There is demand for canola with a high proportion of early shipping slots allocated to getting this crop moving. So the selling strategy aligns with where the demand is.

If the cash crop is canola, growers should know there is demand and that they can offer grain for sale closer to bids if they wish to sell, this will help stabilise prices.

For grains that growers are not happy selling at current prices, offer them for sale at the prices you are happy to sell for. This helps buyers set price expectations.

If you’re harvesting or close to harvest and comfortable some of your production is assured, now’s the time to offer some grain for sale for all buyers to see.

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

Last week 23 grades of wheat, barley, canola, chickpeas, lupins, maize, oats and triticale traded with 30 buyers purchasing and 34 buyers bidding for grain. 107 buyers made 3,620 searches for grain offered for sale.

The prices traded through the exchange at a port track (eastern states) 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.

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

The more grain offered for sale, the more buyers will search for grain and the bigger say in prices growers have.

The intent of the exchange is to make it as easy as possible for growers to set prices and as many buyers as possible try to buy it, whilst securely protecting all parties.

That's how you create demand for grain and establish your grain's true value.

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.