Weekly Grain Traded CGX - 11 August

Grain stored on-farm can now be sold on CGX

Demand for wheat kicked where it was available - Buyers were able to push bids higher on improved export competitiveness of Australian wheat.
Australian grain more competitive for exports - Higher Black Sea prices, higher international shipping rates, and weaker A$ should be helping exports.
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.

When your grain is offered for sale on CGX all buyers can see it and try to purchase it.

Market stats for last week

25 buyers purchased grain on CGX - more were searching for grain
- 7 in NSW and QLD
- 6 in VIC
- 1 in SA
- 14 in WA
102 sellers sold grain through CGX across 152 transactions - more were offering grain for sale
7 agent and/or advisory businesses sold grain on behalf of growers
20 different grades traded
3 commodities - Wheat, barley, canola, lentils, lupins, oats
9 port zones traded across QLD, NSW, VIC, SA and WA

Demand for wheat kicks prices higher

Demand for wheat improved last week pushing prices higher in areas buyers could see it was available.

Buyer bids for Western Australian wheat improved $15/t across most grades from the lows earlier in the week, with more modest price improvements in other zones.

Note; actual traded prices through the exchange were occurring at higher levels than the lows seen in published bids, but the improvement in bids is a strong indicator of a lift in the demand for wheat.

The demand was across most grades with 13 grades of wheat bought by 16 buyers pushing prices higher to match grower offer prices. More buyers were searching for wheat offered for sale.

Australian wheat has become more internationally competitive in recent weeks as Black Sea prices have risen with grain there struggling to flow onto global markets. International shipping rates have also increased and the Australian dollar has weakened.

Yet Australian prices largely didn't see this improvement over the past month. Prices here have generally eroded lower with recent rains providing more confidence in the Australian crop and grower selling.

The push lower in prices was likely amplified week before last by many buyers attending the annual Australian Grain Industry Conference, and so potentially less engaged in buying grain.

Thankfully this pricing direction has improved through this past week particularly where buyers could see grain available to purchase.

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

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

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.

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 $6.31/t above best published bids, some up to $59/t above.

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

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!

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.