Weekly Grain Traded CGX - 4 May - 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

47 buyers purchased grain on CGX - more were searching for grain
- 2 in QLD
- 30 in NSW
- 26 in VIC
- 13 in SA
- 13 in WA
428 sellers sold grain through CGX across 637 transactions - more were offering grain for sale
15 agent and/or advisory businesses sold grain on behalf of growers
58 different grades traded + grain stored on-farm with specific attributes
8 commodities - Wheat, barley, canola, chickpeas, faba beans, lentils, lupins, maize
16 port zones traded across QLD, NSW, VIC, SA and WA

Grain prices continued to climb

Australian prices continued to climb higher through last week, pulled by lifting global prices due to worsening crop conditions and continued global conflict.

The dry conditions through north-eastern Australia continues to play a role in underpinning prices as areas in NSW and SQLD need to price at levels ensuring grain doesn't leave for export.

The dry conditions are also keeping many traders and end-user buyers active in trying to secure grain. 30 different buyers purchased grain through Clear Grain Exchange in NSW alone just last week, with more buyers (68) searching for grain offered for sale. This is a new weekly record despite a 4-day week (market was closed Monday due to public holiday), emphasising the strength of buyer activity.

The more buyers active in trying to buy grain, the more supported prices are as a general rule, and the heightened demand in NSW is trickling to the other states.

26 buyers were searching for grain in QLD, Victoria had 26 different buyers purchase grain and 53 searching, SA had 13 buying and 45 searching, and in WA there were 13 buyers of grain last week and 48 searching grain offered for sale and trying to make parcels work.

Growers are creating this activity. By showing buyers grain exists and prices growers are willing to sell for, they keep buyers interested in trying to buy grain in that area.

If buyers don't believe grain exists, they will move to alternatives and may stop participating all together until the next harvest.

A good example of this is in northern NSW: grain exists on farm, however buyers are looking at cargoes from other parts of Australia to help secure supply because price spreads between states are enabling them to do so. If cargoes start flowing into QLD and other parts of the east, it can reduce demand for the grain that is there.

The same dynamic applies for other states trying to export grain. If buyers don't know it exists they are less likely to participate in trying to export from the port zone. As the year goes on there is less certainty for buyers that grain still exists.

Global prices and currency markets are moving, this impacts the ability for buyers to move prices they can pay for grain. Seeing grain exists keeps buyers participating in your market, regardless of the offer price.

That's the opportunity for growers. Offer grain for sale and let the market do its work. At least then buyers can see grain exists, and if they can't buy it today that's ok, they may be able to buy it in the weeks or months ahead at those prices.

On the global market, prices have been lifting on the back of deteriorating crop conditions particularly through US winter wheat, a major supplier of the global wheat crop. There remains conflict and uncertainty in the world currently at a time when offshore grain customers are typically looking to Australia to supply.

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 (a 4-day trading week) through the exchange across Australia:

47 different buyers purchased grain
129 buyer organisations made 10,103 searches for grain
60 buyers made 832 bids for grain

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

Plenty of buyers want Australian grain with numbers high despite 4 trading days last week. 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 AEST) 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) 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.