Weekly Grain Traded CGX - 9 March - Clear Grain Exchange

Grain stored on-farm can now be sold on CGX

Grain prices improve on uncertainty - Grain prices generally improved through last week though it wasn't a linear trajectory.
Global markets are moving Australian grain prices - Use the 'Market Almost Open' report to check expected price moves ahead of CGX market open.
Plenty of buyers searching for grain - 114 buyers made 9,054 searches for grain offered for sale on CGX. 53 buyers were bidding for grain.

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

46 buyers purchased grain on CGX - more were searching for grain
- 5 in QLD
- 20 in NSW
- 15 in VIC
- 13 in SA
- 22 in WA
508 sellers sold grain through CGX across 752 transactions - more were offering grain for sale
17 agent and/or advisory businesses sold grain on behalf of growers
45 different grades traded + grain stored on-farm with specific attributes
8 commodities - Wheat, barley, canola, lentils, lupins, oats, peas, sorghum
15 port zones traded across QLD, NSW, VIC, SA and WA

Grain prices improve on uncertainty

Grain prices generally improved through last week though it wasn't a linear trajectory.

Monday saw the largest improvement in grain values, mainly due to uncertainty created by the Iranian war that weekend. The Australian dollar weakened and grain futures improved as funds bought back short positions to hold cash.

Demand for Australian grain lifted significantly on Monday with the number of searches for grain offered for sale on Clear Grain Exchange increasing and buyers outbidding each other before market opened at 10am AEDT to get their hands on grain. This saw many growers sell their grain at prices higher than where they'd offered it for sale, which was a nice surprise for many.

Prices then plateaued and retreated later that day and the following day's for many grains. Some agents and growers reacted to the improved price levels and started selling into the traditional cash boards, which saw buyers getting filled and comfortable holding prices.

Grain markets then kicked higher again at the end of the week after grower selling slowed and risk in markets seemed to come back into focus. Spot CBOT wheat futures closed up 30 USc/bu (A$15/t) on Friday night so we may expect some follow through improvement in Australian grain prices to start this week.

Grower's selling prices appear to be setting the current market with heightened demand. Growers selling into bids during the week were capping gains, growers offering grain for sale at their sell prices were pulling bids higher.

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.

Be ahead of Aussie price changes with the 'Market Almost Open' report

Every morning before the CGX market opens, you receive a snapshot of overnight global grain movements and yesterday's CGX traded prices on email.

It takes less than a minute to read and can help guide any changes in your offer prices. You'll recognise the email header above, make it part of your morning routine!

Buyer searches indicate demand and price support

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

Insights to last week's trading activity

Grain continues to trade regularly at very different prices than best published cash bids advertised. Make sure you're aware of this to make sure you're not selling into a bid that may be less than it's trading for.

Grain stored in warehouse (CGX):

Most wheat grades were up around $10/t across Australia except in SA where the moves were less.
Wheat was wheat in terms of price with minimal price differences between grades trading last week across most locations.
APW1 wheat was trading $344/t track port equivalent Brisbane (+$5.50/t above the best published cash bid at the site), $342/t Newcastle, $337/t Kembla (+$11/t), $321/t Melbourne (+$2/t), $313/t Adelaide (+$5/t) and $337/t FIS Kwinana (+$7/t).
ASW1 was trading $341/t Brisbane (+$4/t above best cash bid), $325/t Newcastle (+$5/t), $320/t Kembla (+$1.50/t), $322/t Melbourne (+$9.5/t), $310/t Adelaide (+$7.50/t) and in Kwinana both ASW9 and AWW1 was trading $330/t (+$5/t) with little difference to the lower grades.
Feed barley was trading $337/t Brisbane (+$3/t), $314/t Kembla (+$8.50/t), $312/t Melbourne (+$10/t), $304/t Adelaide (+$13/t) and $338/t Kwinana (+$6/t).
Some modest premiums were paid for malt in some cases but the majority is trading feed values.
Sorghum was trading $352/t Brisbane (+$2/t) and $347/t Newcastle.
There was a lot of GM canola trading last week at $673/t Geelong, $651/t Adelaide (+$50/t above best published bids), and $715/t Kwinana (+$15/t) + oil bonification payments. Non GM canola traded at higher values of $745/t Melbourne + oil.
OAT1 oats were trading $328/t in the west with OAT2 at $320/t and OAT3 at $300/t.
Pulse markets continue to trade with lentils and peas trading $671/t (+$25/t) and $566/t (+$35/t) respectively in Adelaide, lupins were trading $351/t in Kwinana.

Grain stored on-farm (igrainX):

Ex-farm and delivered markets are trading at prices above the natural cost of execution spread to track (or grain stored in warehouse) markets, possibly reflecting a premium for convenience.
In the Brisbane port zone, feed barley was trading $340/t ex-farm around Goondiwindi.
In the Newcastle zone, feed barley was trading $302/t ex-farm Collie and AGP1 wheat was selling for $320/t ex-farm Breeza.
In the Kembla zone, ASW1 wheat traded $300/t ex-farm Binya.
In the Melbourne zone, AUH2 wheat was trading $300/t ex-farm Wagga Wagga and H1 traded $343/t ex-farm Shepparton.
In the Adelaide zone, feed barley traded $288/t ex-farm Meribah as examples.

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

Regardless of where prices are being bid, growers and their agents can offer grain for sale at prices they're targeting to sell. If you have a sell price in mind, it's time to put it out there.

Don’t just offer grain for sale when you're a seller, offer grain for sale when you know prices you'd sell for. More growers are doing this and they're impacting prices.

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? Be proactive, take control, and offer.

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 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.