A private bid is a price for grain sent to you directly from a buyer, on the proviso you don't share it. They can feel like special deals, but they could be doing more harm than you realise.
Every tonne sold into a private bid is a tonne the market never sees.
That means:
No competition is created. A single buyer secures your grain without any other buyers getting a chance to see the price. This leads to only a handful of buyers competing for grain.
Price discovery is lost. If all buyers don't know what price grain is trading at, they don't know the level they need to be at or above to buy grain. The market stays in the dark.
Price signals are weakened. Every private trade is a missed price signal. Less transparency means less upward pressure on bids for the next parcel - yours or anyone else's.
Private trades don't just affect the grain you're selling today. They reduce the impact your grain has on the broader market.
To learn more about the impact of private grain bids click here, Private Bids
Why would you sell at $300 privately when you could sell at $300 publicly?
Every tonne sold publicly adds more value to you than just the price achieved.
It creates competition, adds to price transparency and sends clear price signals to buyers on where their bids need to be to buy grain.
That’s a good thing and will add value to all other grain you sell!
Whenever and however you're selling grain, the CGX team is here to support you every step of the way. Reach out anytime during market hours.
We’re here to help and support any questions you might have.
Just call us on 1800 000 410 or email at support@cgx.com.au