Weekly Grain Traded CGX - 22 December

Grain stored on-farm can now be sold on CGX

Don't just offer grain for sale when you're a seller! - Offer grain for sale when you know prices you will sell for, regardless of where prices are bid.
Keep the market in balance - Rather than delivering and selling into cash bids, deliver and offer grain for sale to keep the market in balance.
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.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

32 buyers purchased grain on CGX - more were searching for grain
- 4 in QLD
- 9 in NSW
- 4 in VIC
- 7 in SA
- 18 in WA
158 sellers sold grain through CGX across 209 transactions - more were offering grain for sale
8 agent and/or advisory businesses sold grain on behalf of growers
32 different grades traded
12 commodities - Wheat, barley, canola, chickpeas, faba beans, lentils, lupins, maize, mustard, oats, peas, sorghum
14 port zones traded across QLD, NSW, VIC, SA and WA

Wishing you a safe festive period

The CGX team want to acknowledge all involved in the harvest this year. There's been significant challenges with harvest conditions, fires and more harvest to go.

Stay safe this Christmas and New Year period - we enjoy working with you and will be operating each business day over the period so reach out anytime.

There's some sentiment from growers and their agents currently around feeling they've missed selling opportunities given many prices have retreated.

In many cases, growers are saying "prices have pulled back now, I wish we'd sold more but it was difficult to do so because we were still harvesting, I'm going to wait and look to sell early in the new year".

The learning from this is to not just offer grain for sale when you're a seller, offer grain for sale when you know a price you will sell for!

More and more growers are logging into cleargrain.com.au, or calling in, to offer grain for sale at the prices they're targeting. Growers using marketing agents are encouraging them to offer their grain for sale on the exchange.

Regardless of where prices are being bid, growers and their agents can offer grain for sale at prices they're targeting to sell.

Growers can sell grain for future delivery while they're harvesting to capture prices. This strategy enables growers to capture prices while giving them time to get grain ready for delivery. Separate the sale from delivery.

We are starting to see this happen now with growers offering grain for delivery in future months on the exchange to manage cashflow but also to ensure they capture pricing opportunities if they eventuate.

Last week 32 grades of wheat, barley, canola, chickpeas, faba beans, lentils, lupins, maize, mustard, oats, peas, and sorghum traded through Clear Grain Exchange (grain stored in warehouse) and igrainX (grain stored on-farm) at grower target prices.

Barley continues to attract the most interest from exporters currently, though the breadth of demand across grains is broad as you can see.

32 buyers purchased the grain but the impact of growers offering grain for sale through the exchange was much larger than that. 41 buyers were bidding for grain offered for sale and 109 buyers made 8,117 searches for grain offered for sale.

There are plenty of buyers who want to buy Australian grain and you're grain can't sell at the price you want if you don't have it out there on offer for sale.

If you’re harvesting or finished harvest, now’s the time to offer grain for sale for all buyers to see on an independent exchange without bias to one buyer.

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

Grower selling behaviour impacts prices. If growers sell a lot of grain consistently into buyer bids advertised on cash boards, buyers will reduce their bids until selling volumes reduce.

An alternative for all growers is to offer that grain for sale as it's being delivered. This can enable the market to trade volume without reducing price.

Buyers are trying to find price levels growers will sell for. Growers selling into cash bids suggests they may also sell at lower prices.

But if growers offer grain for sale, it indicates to buyers that growers will sell at those prices, not below. It helps keep the market in balance rather than buyers reducing bids to see if selling continues.

Another dynamic that can happen when market prices fall is panic selling. At times growers can try and sell into falling bids and effectively undercut each other to get sales away, accentuating the fall in prices.

If growers sell into lower and lower bids, growers can expect many prices to continue downwards.

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

Growers offering grain for sale are not just impacting prices of grain selling within the exchange, but all prices of grain being bid and trading in the broader Australian grain market. Just as growers selling into cash bids are also impacting all price levels for grain.

Offering grain for sale is not about selling for better prices than best published bids, it's about impacting all bids from all buyers, including those published bids advertised on cash boards.

We see buyers logging in and searching grower offer prices on CGX and igrainX in the morning before setting their bids in the broader Australian grain market across cash bids and bid sheets.

Rather than delivering and selling by hitting cash bids, deliver and offer grain for sale at your price and help set the market. Be proactive, take control, and offer.

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?

Growers can help avoid downward price pressure at harvest by offering grain for sale - there is demand for Australian grain.

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.

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.