Weekly Grain Traded CGX - 27 April - Clear Grain Exchange

Grain stored on-farm can now be sold on CGX

Global prices will drive Australian grain prices from here - North-eastern Australia prices are at full execution to import grain from southern states.
Buyer appetite to secure grain in all parts of Australia - Buyers searching and bidding for grain through the exchange across all states is high.
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

53 buyers purchased grain on CGX - more were searching for grain
- 3 in QLD
- 29 in NSW
- 22 in VIC
- 15 in SA
- 17 in WA
403 sellers sold grain through CGX across 573 transactions - more were offering grain for sale
18 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, lentils, lupins, oats, sorghum
16 port zones traded across QLD, NSW, VIC, SA and WA

Global prices will drive Australian prices

NB: Market is closed today due to the ANZAC public holiday in NSW and WA.

Grain prices around Australia are generally trading at full execution cost into north-eastern Australia currently.

Boats of grain are now travelling from the southern states of Australia to the dry areas of north-eastern Australia to help alleviate the tighter supply situation there.

At current price differences across states, grain is able to flow into north-eastern Australia, and these price spreads are likely to remain until wetter conditions provide some relief and certainty over supply in the north-east.

Strong demand for grains and a high number of buyers trying to purchase grains remains and is likely to remain until conditions improve. Though the lift in grain prices led by a drying north-eastern Australia has run most, if not all, of its course.

So what will drive prices from here? Most likely global grain prices. If global grain prices lift, it will lift all grain prices across Australia (at current intra-state price spreads), and vice versa.

The widening demand arc for grain into the north-eastern markets means it has become another export destination for grains (higher demand), and there will be less exports from eastern Australia (lower supply).

There remains conflict and uncertainty in the world currently at a time when offshore grain customers are typically looking to Australia to supply. This may create more price volatility in global grain markets, though predicting those movements is difficult.

Growers are largely setting prices in this market

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

One thing all growers can do, is offer grain for sale at prices they would sell for, regardless of current price levels or prices being bid from buyers.

Last week through the exchange across Australia:

53 different buyers purchased grain
136 buyer organisations made 10,599 searches for grain
60 buyers made 644 bids for grain
and there were 29 different buyers who purchased grain in NSW alone

… more were searching for grain to buy.

The number of buyers searching and bidding for Australian grain through the exchange across all states is 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.

Buyers searching for grain indicates demand

136 buyers searching for grain last week is the highest in 24 months. Plenty of buyers want Australian grain. These search numbers are an indicator of demand - the higher these numbers, the more supported prices are.

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.

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) tooffer 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.