Weekly Grain Traded CGX - 20 April - Clear Grain Exchange

Grain stored on-farm can now be sold on CGX

Rising tide is floating all boats across grains - Drying conditions in north-eastern Australia is having a trickle down tightening impact on grains.
Buyer appetite to secure grain has increased in all parts of Australia - Prices are lifting as buyers search and bid to buy grain.
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

54 buyers purchased grain on CGX - more were searching for grain
- 3 in QLD
- 27 in NSW
- 24 in VIC
- 13 in SA
- 14 in WA
292 sellers sold grain through CGX across 437 transactions - more were offering grain for sale
16 agent and/or advisory businesses sold grain on behalf of growers
38 different grades traded + grain stored on-farm with specific attributes
8 commodities - Wheat, barley, canola, faba beans, lupins, maize, oats, sorghum
15 port zones traded across QLD, NSW, VIC, SA and WA

Rising tide floating all boats in grains

Drying conditions in north-eastern Australia is having a trickle down tightening impact on grain supply around Australia.

It's seeing buyer appetite to secure grain increase in all parts of Australia, and lifting prices.

Traded prices have risen significantly in QLD and northern NSW with ASW1 wheat trading $425/t ex-farm through igrainX, with an approximate $15/t freight to Darling Downs, hence $440/t delivered Darling Downs last week as an example.

Drying conditions has seen the accumulation arc into this region spread further down the east coast, meaning prices have to increase to pull the grain up to where it's needed.

The number of buyers purchasing grain through NSW via Clear Grain Exchange each week has been 27, 25, and 27 respectively over the last 3 weeks. This compares with an average of 17 buyers over the 10 weeks prior.

Price lifts have been driven by feed demand with little price differences between lower grade grains and better milling quality grades such as APW1.

However millers are still active and trying to stay ahead of the widening demand arc with grades such as APH2, H1, H2 attracting premiums when grain is offered and prices are asked for.

The demand profile has flowed down into southern states with 24 different buyers purchasing grain last week through VIC. Plenty more buyers are searching for grain offered for sale.

VIC demand is being driven by the pull for grain into those northern markets, it means the VIC end-user also needs to get active to secure supply.

In SA and WA, the widening demand arc for grain into the north-eastern markets and increased prices there means it becomes another potential export destination for grains (higher demand), and means less exports from those other states (lower supply). That's been supportive to price, particularly with comparatively less export competition from other parts of the world at this time of year.

Grower prices have been leading this market higher. Growers are setting prices, bids have been coming up to match, and the north-eastern market prices have quickly risen to near full execution to import grain from southern export orientated states.

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 54 different buyers purchased grain through the exchange across Australia. 130 buyer organisations made 8,845 searches for grain they could try and purchase last week and 60 buyers made 611 bids for grain.

The number of buyers searching and bidding for Australian grain through the exchange remains high, and is an indicator of demand and supportive to 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.

Regardless of where prices are being bid, growers and their agents can offer grain for sale at prices they're targeting to sell. Don’t just offer grain for sale when you're a seller, offer grain for sale when you know prices you'd sell for.

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.

Plenty of buyers want Australian grain. These search numbers are an indicator of demand - the higher these numbers, the more supported prices are. Last week was a shortened week with only 4 trading days.

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 that suit them 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.