Weekly Grain Traded CGX -18 May

Grain stored on-farm can now be sold on CGX

Grain prices bounce up to season highs - Many growers were able to take advantage and sell at their offer prices before prices retreated again.
Growers have been setting prices at recent highs on the exchange - It's helped growers achieve their prices even if opportunity was short lived.
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

44 buyers purchased grain on CGX - more were searching for grain
- 4 in QLD
- 17 in NSW
- 16 in VIC
- 16 in SA
- 17 in WA
230 sellers sold grain through CGX across 349 transactions - more were offering grain for sale
12 agent and/or advisory businesses sold grain on behalf of growers
33 different grades traded + grain stored on-farm with specific attributes
9 commodities - Wheat, barley, canola, chickpeas, lentils, lupins, oats, peas, sorghum
15 port zones traded across QLD, NSW, VIC, SA and WA

Prices bounce up to season highs

Australian grain prices bounced higher last week enabling growers to sell at season highs, before values settled and retreated again.

The lift in prices was due to the May USDA monthly WASDE report reducing the size of the US winter wheat crop to the lowest levels in 54 years.

The US winter wheat crop is a major supplier to the world market and has been impacted by persistent dry weather. This has been monitored closely by the market and a large reason for the more than 100USc/bu lift in CBOT wheat futures since the January lows, or more than A$50/t in A$ terms at current exchange rates.

Last week the USDA reported the US winter wheat crop at 28% good-to-excellent, down 3% from the previous week, and compares to 54% last year. They also report that 40% of the crop is rated poor-to-very poor, up 3% from the prior week, and compares to 18% last year.

The annual on-ground US Wheat Quality Council tour through the main areas of the crop last week appears to have confirmed the poor consensus.

However CBOT wheat prices have since given back all the gains made after the USDA report, falling back to previous levels on the feeling it rose too high too quick.

This, along with some rain in the eastern states, saw Australian buyers become more cautious and pull their bids back at the end of last week.

International markets are driving Australian prices currently given the potential drought in north-eastern Australia is now fully priced at import parity.

The US wheat crop is supporting global prices, as is the outlook on their corn crop, however conditions through the Black Sea and much of Europe are more favourable towards decent crop production. These areas along with Canadian supply determined through their spring, are also major suppliers to the world.

For what it's worth, the explanation by ChatGPT for the steep fall in CBOT wheat futures at the end of last week was - "the correction looked more like a healthy retracement inside a bullish weather market, rather than a complete bearish reversal" - fingers crossed.

The market is volatile right now and it's providing opportunity for growers to achieve prices they want to sell for. These opportunities can be short lived and frustrating for growers to try and capture if they stand aside watching prices move and then contemplate whether to sell or not.

Growers can flip the order here. That is, think about prices you would sell for first and offer grain for sale. Let the market do its work. You can then sit back and watch knowing all buyers can buy your grain, meaning your price is more likely to be achieved.

Growers are largely setting prices in this market

Growers are setting prices and enabling buyer bids to come to those levels across all states and grains.

Last week...

44 different buyers purchased grain through the exchange.
123 buyer organisations made 7,335 searches for grain.
47 buyers made 451 bids for grain.

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.

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.

Buyers searching for grain indicates demand

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

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.