Weekly Grain Traded CGX - 16 March - Clear Grain Exchange

Grain stored on-farm can now be sold on CGX

Intense demand saw buyers bid up for grower grain - 493 growers were able to sell multiple parcels of grain on the lift in prices last week.
Growers setting grain prices - 124 buyers searched for grain offered for sale on CGX. 57 buyers were bidding for grain.
Global markets are moving Australian grain prices - Use the 'Market Almost Open' report to check expected price moves ahead of market open.

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

50 buyers purchased grain on CGX - more were searching for grain
- 5 in QLD
- 17 in NSW
- 19 in VIC
- 12 in SA
- 20 in WA
493 sellers sold grain through CGX across 739 transactions - more were offering grain for sale
16 agent and/or advisory businesses sold grain on behalf of growers
54 different grades traded + grain stored on-farm with specific attributes
8 commodities - Wheat, barley, canola, faba beans, lentils, lupins, oats, peas
16 port zones traded across QLD, NSW, VIC, SA and WA

Grain prices improve on uncertainty

Many growers were able to sell grain at or above their target prices on Monday last week. A short term lift in CBOT wheat futures and lower Australian dollar saw intense demand from buyers who lifted prices to secure grain.

There were buyers placing bids in the exchange above where growers had offered grain for sale. In this instance grain trades up to the buyers bid price so many growers achieved better prices than they had offered for sale.

The reason buyers were doing this was to secure grain at the price they were able to pay quickly before CBOT and currency markets moved again, or another buyer jumped in to secure the grain.

57 buyer organisations bid for grain on the exchange last week, the highest number in 11 months. 124 buyers searched for grain on the exchange last week, the second highest ever!

Buyers have been actively trying to buy Australian grain. So when markets moved and provided them an opportunity to pass on those gains and lift prices, they acted quickly and it provided opportunity for growers that were organised with their grain offered for sale.

Unfortunately the rally in prices didn't continue through last week with values correcting lower later in the day on Monday and in the following days.

The electronic market of firm bids and offers enabled significant volume to trade between multiple buyers and sellers and capture the value created by Monday's market moves which is unlikely to have happened otherwise.

Many growers and their agents have since been offering grain for sale at those previously traded prices to ensure they are able to take advantage of a lift in prices if it happens again. Many have also offered grain at higher prices with a view that values may rally further. Others have offered grain at multiple prices in an effort to not miss any short term price spikes, but also benefit from a more sustained rally if it eventuates by averaging their price up.

CBOT wheat closed stronger and the Australian dollar weakened at the end of last week which may provide price opportunities to start this week if growers are prepared.

Monday saw intense demand for grain

Growers are impacting the price of Australian grain by offering grain for sale and setting prices.

Grain continues to trade at very different prices than best published cash bids advertised. Make sure you're aware of this so you're not selling into a cash price that may be less than it's trading for.

Regardless of where prices are being bid, growers and their agents can offer grain for sale at prices they're targeting to sell. If you have a sell price in mind, it's time to put it out there.

Buyer searches indicate demand and price support

Plenty of buyers want Australian grain. These search numbers are an indicator of demand - the higher these numbers, the more supported prices are.

Don’t just offer grain for sale when you're a seller, offer grain for sale when you know prices you'd sell for. More growers are doing this and they're impacting prices.

There’s no downside in offering your grain for sale, only upside – why wouldn’t you offer all of your grain for sale at prices you're happy with? Be proactive, take control, and offer.

Remember, your grain can only sell on Clear Grain Exchange within market open hours (10am to 8:30pm AEDT) 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.

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.