Weekly Grain Traded CGX -11 May

Grain stored on-farm can now be sold on CGX

Bid-Offer price spread widens - Buyers stayed interested in buying grain though took a more conservative approach to pricing grain last week
Growers have been setting prices at recent highs on the exchange - Numerous trades going through at or very near recent price highs.
Offer grain for sale when you know prices you'd sell for - Regardless of where grain prices are bid, growers can list grain for sale at their prices.

27 buyer businesses purchased grain through Clear Grain Exchange (CGX) last week. More buyers were searching for grain offered for sale.

Market stats for last week

37 buyers purchased grain on CGX - more were searching for grain
- 13 in QLD and NSW
- 21 in VIC
- 8 in SA
- 10 in WA
131 sellers sold grain through CGX across 177 transactions - more were offering grain for sale
10 agent and/or advisory businesses sold grain on behalf of growers
28 different grades traded + grain stored on-farm with specific attributes
7 commodities - Wheat, barley, canola, chickpeas, faba beans, lupins, oats
14 port zones traded across QLD, NSW, VIC, SA and WA

Grain prices continued to climb

Buyer bid prices pulled back through last week as international futures markets backed off the recent peaks, the Aussie dollar stayed up near 72 US cents, and some rain was received through parts of the Australian cropping belt.

This saw buyers take a more conservative approach to pricing grain last week. Importantly, they stayed very interested in buying grain.

The number of buyers purchasing grain through the exchange dropped to 37 last week, down from the weeks prior. The number of buyers searching for grain and number of searches they made remained robust at 125 and 7,153 respectively.

The demand for grain has not evaporated. It is the price that buyers have become more conservative on.

Growers have generally been reluctant to adjust prices lower, through the exchange at least. This has led to a widening bid-offer price spread across most grades and locations around Australia.

We're seeing many growers offering grain for sale at those recent price peaks acknowledging that if prices reach those levels again, they'd be comfortable selling more old crop.

There were also numerous trades going through at or very near the recent price highs, which reflects the continued demand profile underpinning prices.

Those buyers that required grain in the near term bid up to match grower offer prices, while other buyers kept searching for grain to buy but were more patient on bidding up.

Grower behaviour from here will now have a big impact on price direction. Sell into bids and prices have the potential to continue pulling lower. Offer grain for sale and show buyers where you are a seller and prices potentially hold.

Offshore grain customers are typically looking to Australia for supply at this time of year meaning growers here have a say in prices.

On the international front, the reportedly poor condition of the US winter wheat crop, which is a large supplier to the world, has been supporting prices.

The crop is rated 31% good-or-excellent and 37% poor-or-very poor versus 51% good-to-excellent and 18% poor-to-very poor last year.

This week the annual US Wheat Quality Council Hard Winter Wheat Tour will be underway and you can expect the market may react to the daily on ground reports.

Growers are largely setting prices in this market

Growers are setting prices and pulling bids to those levels across all states and grains.

Last week 37 different buyers purchased grain through the exchange. 125 buyer organisations made 7,153 searches for grain, 46 buyers made 338 bids for grain.

Growers are creating this activity. Global prices and currency markets are moving, this impacts the ability for buyers to move prices they can pay for grain. When buyers see grain exists, they keep participating in your market, regardless of the offer price.

That's the opportunity for growers. Offer grain for sale and let the market do its work. At least then buyers can see grain exists, and if they can't buy it today that's ok, they may be able to buy it in the weeks or months ahead at those prices.

Growers with grain stored on-farm are making use of igrainX to list grain for sale within their online Clear Grain Exchange account and getting the benefit of all buyers being able to see it and bid for it.

Buyers searching for grain indicates demand

Plenty of buyers want Australian grain with numbers high despite 4 trading days last week. These search numbers are an indicator of demand - the higher these numbers, the more supported prices are.

Remember, your grain can only sell on Clear Grain Exchange within market open hours (10am to 8:30pm AEST) at the price you set and you're able to edit your offer price any time before it trades.

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.

Blank grades are grain that's been described by growers for grain stored on-farm and does not necessarily meet a GTA grade.

NB: growers can use igrainX (via their online CGX account) to offer grain into multiple delivered locations simultaneously. Growers set the grain specs, delivery period and price. Once a buyer matches an offer, the offers into other locations cancel immediately. It's been a great way for growers to get their grain out there offered for sale into multiple locations they're happy to deliver into.

Please call the CGX team 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.