CLEAR GrainCorp Integration Frequently Asked Questions

What are the terms of the agreement between GrainCorp and CLEAR?

The integration between the GrainCorp stock system and the CLEAR Grain Exchange allows growers with grain warehoused at a GrainCorp site to sell their grain via CLEAR. The integration is a simple way of providing more grain marketing choice for growers and grain buyers.

How does the systems integration work?

The CLEAR system ‘looks through’ into the GrainCorp stock system and allows automatic transfer of grain from one system to another. This is a ‘backend’ integration and doesn't change the way in which growers or buyers use either the GrainCorp stock system or the CLEAR Grain Exchange.

All information in the GrainCorp system remains confidential and no grower’s grain will appear on offer in CLEAR until a grower logs on to CLEAR and places their grain in the market. If a grower elects not to use CLEAR, their stock information will not be seen by any other registered user and will remain confidential. All transactions, bids and offers on the CLEAR Grain Exchange remain anonymous at all times.

Is there any change to the way the GrainCorp stock system will work?

No. It’s ‘business as usual’ as far as the GrainCorp stock system is concerned. Growers who have used the system in the past will see no difference. They will be able to view their grain stocks once their delivery tickets have been processed.

Is there any change to how the CLEAR Grain Exchange operates as a result of the integration?

No. There is no change to the way the CLEAR Grain Exchange operates as a result of the systems integration. CLEAR continues to operate the only independent national grain exchange. CLEAR remains the same easy-to-use online marketing option for growers, with fast payment terms and title security.

So what will change?

Growers with grain warehoused at a GrainCorp site will now be able to sell their grain via CLEAR once their tickets are available in the GrainCorp stock system. There will be no need to manually transfer tickets to CLEAR, the data integration will be both seamless and confidential.

To use CLEAR to sell grain, all a Grower has to do is log onto the CLEAR Grain Exchange and place their grain in the market. It’s easy, secure and independent.

Will the integration between GrainCorp and CLEAR increase costs?

No. There will be no cost increase to GrainCorp warehousing. There will be no cost increase to using the CLEAR Grain Exchange. CLEAR remains free for growers.

What does the systems integration between GrainCorp and CLEAR mean for growers and buyers?

For growers it means that another marketing alternative is available for grain in warehousing. Growers will have more marketing choice and another way of managing price risk. It also means that more growers can access more buyers, so they can exercise their market power in another way.

For buyers it means that there will be more growers selling through CLEAR this harvest and this will mean that the marketplace has more liquidity.

Why are GrainCorp and CLEAR integrating their systems?

The integrated systems improve the service offering to growers and buyers, improving liquidity and providing more price transparency and more price discovery to the marketplace.

Both GrainCorp and CLEAR want to provide more ways for grain growers and buyers to interact. The removal of the bulk wheat export monopoly means that there is more competition in the market from day to day. It also means that companies like GrainCorp and CLEAR are free to provide innovative marketing alternatives that will help both sellers and buyers transact more efficiently.

Does this mean that GrainCorp now owns CLEAR or has a financial stake in CLEAR?

No. GrainCorp has no ownership in CLEAR. CLEAR remains the only independent national grain exchange in Australia. The integration is about bringing innovative grain marketing alternatives to the Australian grain market following removal of the wheat export monopoly.

How much control of stock information do growers have?

Growers have complete control of their own stock information. All stock information remains confidential. Importantly, all transactions, bids and offers on the CLEAR Grain Exchange remain anonymous at all times. Buyers can’t see an individual grower’s warehoused grain on CLEAR unless a grower logs onto CLEAR and places parcels of grain on offer. It’s the grower’s choice to use CLEAR to sell grain warehoused at a GrainCorp site.

What are the benefits to a grower of using CLEAR to sell grain warehoused with GrainCorp?

The integration will give growers more options and more control over their marketing decisions. CLEAR allows growers to set their own price and readily access a range of ‘real-time’ market bids from more buyers and easily compare prices with bids posted at a silo, through the current GrainCorp online system, or compare against pools and other methods of selling.

As CLEAR is a live system, growers get access to all buyer bids at the click of a button, which improves price transparency and price discovery. Furthermore, CLEAR provides fast payment for growers (7 days) and complete security of payment – title only transfers to the buyer when cleared funds are received.

What are the benefits to buyers of using CLEAR to purchase grain warehoused with GrainCorp?

The integration will give buyers immediate access to more growers and more control over their bid prices at all GrainCorp sites instantly. CLEAR allows buyers to publish live market bids, manage grade spreads and leverage custom freight rates. Buyers can better manage market risk and, for the first time, set bid limits at every GrainCorp site, right across the east coast of Australia, simply with the click of a button.

As CLEAR is a live system, buyers get access to all grower offers for grain warehoused in GrainCorp sites in real-time. CLEAR delivers origination efficiency, streamlined administration and powerful trading tools for buyers.