CGX trades through 1 million tonne for the season!

Clear Grain Exchange has now traded more than 1,000,000 tonnes since 1 October 2016. It's the first time the exchange has traded more than 1 million tonne during the period 1 October to 30 September and represents year on year growth in trade volumes of 90% to date.

Whilst a larger Australian crop this year has no doubt contributed to volumes on the exchange, the milestone has been built on a lot of hard work from the team, our partners, and most importantly the exchange returning real value to our clients!

The trade that knocked us through the 1 million tonne mark was for 2,514.25t of ASW1 wheat at GrainCorp's Milbulong site in the Melbourne port zone at a price of $194.50/t; when the best public price as collected by Profarmer was $183.50/t (see below).

This trade is indicative of the value created by the exchange via better connectivity between a seller and buyer. The exchange helps create a match between seller and buyer that may not otherwise have occurred - that's how value is created! 

Improvements to CGX and partners key to growth

At Clear Grain Exchange our purpose is to build and operate markets that improve economic returns at the farm gate. We do this by providing a platform where growers can offer their grain making it easier for buyers to search and bid on their grain. This helps create more competition at the farm gate and achieve true price transparency for growers. All trades are financially secure with growers not losing title of their grain until they are paid and paperwork on statutory levies and end point royalties is all taken care of.

Feedback from our customers is that the exchange is very easy to use particularly since the changes we made last year including: 

• Moving to Delivered Site Pricing (FIS in WA) from the old FIS shrunk tonnes model
• Now paying oil bonifications on canola as per AOF standards rather than flat pricing 

Customers also love the integration CGX has with GrainCorp which makes the sales process seamless. They are great a partner and well aligned in generating value back to their customers.

This year CGX has also had a significant increase in the number of grain marketing agent/advisor businesses using the exchange to compliment their service to clients. 24 different "agent" businesses have used the platform this year on behalf of their clients. Hence if you use a grain marketing professional please ensure they are registered and ready to go with CGX!

CGX would like to extend a sincere thank you to all our clients and partners for your support and we look forward to generating more value for you through more efficient markets in the future. The more volume on the exchange, the more value generated for clients!

Follow us on twitter for market updates! @ClearGrain

Exporters continue to drive demand and price

So what happened on the exchange last week to drive trade volumes? Exporters continue to drive demand as they push to make the most of solid off-shore demand for Aussie grain ahead of the northern hemisphere harvest coming online.

54,338t traded on CGX last week made up of 17 grades, 5 different commodities, across 11 port zones around Australia.

Victorian wheat was where the bulk of trades occurred given it is currently priced well into the export market. This saw buyers step up to grower offer prices despite moves in CBOT and the Aussie dollar indicating prices will be relatively flat.

Last week there were a number of reports highlighting concerns over spring wheat in north America which places more emphasis on the quality of the global crop. The world may produce enough grain volume but what is the quality? This may well generate some interest in APW1 and above grades of wheat. 

Some local buyer demand flowed into the higher protein wheat grades through QLD and NSW on the back of this during the week.

It is worth noting that Victoria is where CGX has the largest volume of "Offers" set by growers. Offers generate trades - buyers typically jump up and hit offer prices; if they can't see it, they can't bid on it. Hence why we encourage growers to offer their grain at the price they want to generate opportunities. You can cancel your offer at anytime and it doesn't cost you anything to do so! 

The value of being proactive and engaging the market with your offer price is that buyers may have a willingness to pay more than what they advertise publicly.

You can defer payment on sales with CGX

CGX provides a deferred payment option with a box that can simply be ticked at time of placing your offer order (see below). We thought it is timely to recap on how it works so you can discuss with your accountant whether the option is appropriate for your business.

Things to note regarding the CGX deferred payment option:

• Unfortunately there is no interest paid on deferred amounts. 
• The title transfer of grain happens within 7 days of the trade as per normal terms but only after monies are received by our independent custodian.
• Monies received from the buyer are held on the sellers behalf by our independent custodian operating the bare trust as part of CGX's secure settlement process (which is why there is no interest!).
• Payment of deferred monies will be made within the first 2 business days of July. 

There is nothing to lose by giving CGX a go!

It’s free to register and free to offer your grain on Clear Grain Exchange and you can edit or cancel your offer at any time. 

A trade can only occur at the price you put on it, your offer is exposed to all buyers and if your grain trades you are protected by a secure settlement process that ensures you don't lose title of your grain until you are paid.

Therefore as long as you are happy with the price and amount of grain you put on offer, there is no downside in giving the exchange a go!

If you need help registering a Clear Grain Exchange account or offering your grain, please don’t hesitate to contact the team.
P: 1800 000 410
E: support@cleargrain.com.au

CGX Trade Opportunities Report - May 29

May 29, 2017

Highlights: Demand continues to be driven by exporters - posing the question as to what demand will be from exporters in the second half of the year. Domestic demand remains and some areas are dry - less than ideal planting conditions in some areas is seeing growers hold old crop. A summary of notifications you receive from CGX - CGX ensures you are always kept in the loop of market activity relevant to your offer.

FREE TO REGISTER - FREE TO OFFER Buyers managing their export requirements Buyer appetite continues to be driven by exporters as they look to take advantage of solid off-shore demand for Aussie grain ahead of the northern hemisphere harvest coming online. Victorian and South Australian grain is priced most attractive for exports and that is where buyers were focused last week. 13 grades traded across 9 port zones with 80% of all trades occurring in Victoria and South Australia.  The other trend last week was the renewed focus on wheat. 76% of all trades on CGX were wheat grades with the remaining 24% of trades made up of barley and sorghum grades. This compares with the week prior where 61% of all trades were made up of barley grades! Of last week's wheat trades we saw prices on CGX trade up to $11/t above the best public bid on the day as collected by Profarmer. Major grades included ASW1, AGP1, H2 and APW1 with minor grades such as AUH2 and FED1 also finding homes as buyers manage their purchases against the export specifications they have sold. Feed barley was the second largest grade traded at 17% of all trades. Domestic demand continues to tick along providing opportunities for growers to price all grades of grain in all port zones, but certainly the volume of demand has been driven by exporters. This poses the question as to what demand will be like for Aussie grain in the second half of the year when Northern Hemisphere supply comes online? There have been some issues with northern hemisphere production recently such as US snow damage and dryness in the EU curbing production prospects in those areas however it still appears they will be exporting grain in competition to Australia - hopefully just not as much as recent years!  On the offer side, unfortunately growers in a number of areas (especially NSW, QLD and WA) have had less rain than normal as they try to complete their planting programs. In many cases this has meant they are reluctant to sell grain still being held from the 16/17 harvest. The value of being proactive and engaging the market with your offer price is that buyers may have a willingness to pay more than what they advertise publicly. Click here to view recent trades Click here to view market spreads CGX notifications ensure you are always in the loop Clear Grain Exchange aims to ensure you are fully informed of your offer orders, trades and payment details at anytime. All details are available online via logging in to cleargrain.com.au however the exchange also provides notifications direct to your email and mobile to ensure you are comfortable with your transactions and can proactively manage your orders at anytime. The table below provides a brief summary of the notifications growers receive when using CGX. Having your offer in CGX means you don’t miss opportunities regardless of how short lived they may be! Notifications keep you in control every step of the way. Your Grain - Your Price - Your Exchange When you have an offer in CGX you receive free text messages of any trade of your grade in your area..... Providing powerful market intel specific to your grain! Bigpond and activ8 having some problems For growers using bigpond and activ8 email addresses please note there have been reports of some issues with their service. Please see links below to helpful articles on the issues. http://aussieoutages.com/status/bigpond http://aussieoutages.com/status/bigpond/news/130135-problems-at-bigpond http://servicestatus.telstra.com/ This may have resulted in you not receiving emails from us whilst your service provider was working these out. If you have not received an email from us please call and we will provide necessary details of any orders or trades. Alternatively you can simply login directly to your account at cleargrain.com.au and access records of all your trades. Forgotten your CGX password? Click here to reset Nothing to lose in getting set-up It’s free to register and free to offer your grain on Clear Grain Exchange and you can edit or cancel your offer at any time.  A trade can only occur at the price you put on it, your offer is exposed to all buyers and if your grain trades you are protected by a secure settlement process that ensures you don't lose title of your grain until you are paid. Therefore as long as you are happy with the price and amount of grain you put on offer, there is no downside in giving the exchange a go! If you need help registering a Clear Grain Exchange account or offering your grain, please don’t hesitate to contact the team. P: 1800 000 410 E: support@cleargrain.com.au FREE TO REGISTER - FREE TO OFFER Follow us on twitter for market updates! @ClearGrain

About Clear Grain Exchange Clear Grain Exchange is an independent online platform where grain sellers can offer their grain, at their price, in an open market to all buyers. If the grain trades, a secure settlement process ensures sellers don't lose title until they're paid, within 7 days. Grain buyers benefit from more efficient accumulation given they are able to view parcels of grain ready for sale in a firm and live market. The exchange also ensures a robust paper trail of all orders and transactions. At time of settlement, appropriate levies, end point royalties, and any applicable fees associated with the storage provider are deducted, cutting down the paperwork into one simple transaction. Our aim is to foster competition at the farm gate and ultimately improve returns by creating an efficient market where all supply chain participants benefit. Think of Clear Grain Exchange as the share market for Australian Grain. CGX Trade Opportunities Report - May 22 May 22, 2017 Highlights: Another milestone for Clear Grain Exchange – CGX traded through 900,000t for the season; importantly trades are averaging well above best public bids to growers! Demand focused on barley exports – It was all about barley demand for export last week with wheat seeing a flurry of activity late in the week. Notifications you receive from CGX – CGX ensures you are always kept in the loop of market activity relevant to your offer. FREE TO REGISTER - FREE TO OFFER More volume creates more value at the farm gate Clear Grain Exchange has now traded more than 900,000t since 1 October 2016. Most importantly the average trade price on the exchange over that period is more than $3.25/t above the best public bid (as collected by Profarmer) and more than $5/t above the best public bid over the last 6 weeks!  For trades within the GrainCorp system the average trade price is further above the best public bid thanks to the integration between CGX and GrainCorp supporting connectivity between buyers and sellers. Hence the more volume on the exchange the more value at the farm gate which is Clear Grain Exchange’s purpose “To build and operate markets that improve farm gate returns”. Growth in Clear Grain Exchange volumes has largely been due to improving the usability of the platform and partnerships established with many consultant and broker businesses now using CGX to create value for their clients. If you are not registered with CGX and you use a broker, ask them to get set-up on the exchange! The value of being proactive and engaging the market with your offer price is that buyers may have a willingness to pay more than what they advertise publicly. Follow us on twitter for market updates! @ClearGrain Click here to view recent trades Demand focused on barley exports last week Barley values continued to lift last week as exporters chased the commodity to cover off-shore demand. Victoria and South Australian barley is priced most competitively into the export market currently and as a result this is where the demand was focused. Many trades were going through well in excess of public bids which is a good indicator of the strength in buyer demand. Strong buyer demand for feed barley flowed over to remaining malt barley grades for sale with many growers still carrying these grades able to achieve their offer price. Wheat was getting a sideways, if not weaker lead from CBOT wheat futures over the week which meant buyers were struggling to pay up to grower offer prices. However Friday saw a number of buyers step in and lift bids up to grower prices despite the movement in CBOT wheat being flat on Thursday night. It just goes to show you may not know you can achieve the price you want unless you give it a go with your offer! There is nothing to lose by having your offer in Clear Grain Exchange - you can cancel at anytime with no charge. In total 18 grades traded across 11 port zones last week.  Having your offer in CGX means you don’t miss opportunities regardless of how short lived they may be! Click here to view market spreads CGX notifications ensure you are always in the loop Clear Grain Exchange aims to ensure you are fully informed of your offer orders, trades and payment details at anytime. All details are available online via logging in to cleargrain.com.au however the exchange also provide notifications direct to your email and mobile to ensure you are comfortable with your transactions and can proactively manage your orders at anytime. For growers using bigpond and activ8 email addresses please note there have been reports of some issues with their service. Please see links below to helpful articles on the issues. http://aussieoutages.com/status/bigpond http://aussieoutages.com/status/bigpond/news/130135-problems-at-bigpond http://servicestatus.telstra.com/ These issues may have resulted in you not receiving emails from us whilst your service provider was working these out. If you have not received an email from us please call us and we will provide necessary details of any orders or trades or simply login directly to your account at cleargrain.com.au. The table below provides a brief summary of the notifications growers receive when using CGX. When you have an offer in CGX you receive free text messages of any trade of your grade in your area..... Providing powerful market intel specific to your grain!   It’s free to register and free to offer your grain on Clear Grain Exchange and you can edit or cancel your offer at any time.  A trade can only occur at the price you put on it, your offer is exposed to all buyers and if your grain trades you are protected by a secure settlement process that ensures you don't lose title of your grain until you are paid. Therefore as long as you are happy with the price and amount of grain you put on offer, there is no downside in giving the exchange a go! If you need help registering a Clear Grain Exchange account or offering your grain, please don’t hesitate to contact the team. P: 1800 000 410 E: support@cleargrain.com.au FREE TO REGISTER - FREE TO OFFER About Clear Grain Exchange Clear Grain Exchange is an independent online platform where grain sellers can offer their grain, at their price, in an open market to all buyers. If the grain trades, a secure settlement process ensures sellers don't lose title until they're paid, within 7 days. Grain buyers benefit from more efficient accumulation given they are able to view parcels of grain ready for sale in a firm and live market. The exchange also ensures a robust paper trail of all orders and transactions. At time of settlement, appropriate levies, end point royalties, and any applicable fees associated with the storage provider are deducted, cutting down the paperwork into one simple transaction. Our aim is to foster competition at the farm gate and ultimately improve returns by creating an efficient market where all supply chain participants benefit. Think of Clear Grain Exchange as the share market for Australian Grain. CGX Trade Opportunities Report - May 15 May 15, 2017 Highlights: Trades average $5/t above public bids in the last 5 weeks - Hence your offer on the exchange creates true price discovery for your grain.  Demand exists if you engage with your price - 18 grades of 5 commodities traded across 12 port zones on the exchange last week. Your grain can trade "above" your offer price on CGX - Your grain can never sell lower than your offer price, however it can sell higher!  FREE TO REGISTER - FREE TO OFFER Trades average $5/t above public bids in last 5 weeks In the last 5 weeks Clear Grain Exchange has traded ~100,000t and averaged $5/t better than the best public bid (as collected by Profarmer). This equates to ~$500,000 of value! Hence the more volume on the exchange the more value at the farm gate. Last week many trades were going through well above public bids across a number grades and locations highlights the benefit of being proactive and offering your grain at your price so buyers can bid on it. Without the offer in CGX, trades at these values are unlikely to occur. By offering your grain it can create demand that may not have otherwise been realised! The value of being proactive and engaging the market with your offer price is that buyers may have a willingness to pay more than what they advertise publicly. Click here to view recent trades When you have an offer in CGX you receive free text messages of any trade of your grade in your area..... Providing powerful market intel specific to your grain! Demand exists if you engage with your price CBOT wheat futures in A$/t terms largely traded sideways last week yet buyers were able to make parcels of grain work with trades in excess of public bids in many locations. Feed barley values are holding if not lifting in many areas driven by continued export demand. Sorghum is slowly making its way into storage and interestingly a number of parcels of malt barley traded last week as buyers cover excess demand as needed. In total 18 grades of 5 commodities traded across 12 port zones on Clear Grain Exchange last week. 55% of all grain traded was wheat (7 grades), 35% was barley (6 grades), 5% was sorghum (2 grades), 3% was canola (1 grade), and oats and chickpeas made up 1% each (1 grade each). The predominant grades traded were H2 wheat at 21% of all trades, followed by Feed barley (25%), ASW1 wheat (18%) and APW1 (10%). All other grades were 5% or less of all trades last week.  Having your offer in CGX means you don’t miss opportunities regardless of how short lived they may be! Click here to view market spreads There is no downside in having your grain on offer! You won’t know unless you give it a go! There is nothing to lose by having your offer in Clear Grain Exchange.  It’s free to have an account, free to offer and you can edit or cancel your offer at any time. Hence if you receive a bid that you want directly from a buyer or broker simply cancel your offer on Clear Grain Exchange (it has not cost you anything at this point) and then you can sell into that bid.  A trade can only occur at the price you put on it or better! On CGX your grain can not sell below your offer price; however can sell above that price. The CGX system will always trade grain at the highest bid price so long as it is equal to or above the offer price. If your grain trades it costs $1.10/t or if you are using a registered broker, the cost is the brokerage they disclose to you before trading.  Your offer is exposed to all buyers and if your grain trades you are protected by a secure settlement process that ensures you don't lose title of your grain until you are paid. Follow us on twitter and get live notification of opportunities! @ClearGrain FREE TO REGISTER - FREE TO OFFER About Clear Grain Exchange Clear Grain Exchange is an independent online platform where grain sellers can offer their grain, at their price, in an open market to all buyers. If the grain trades, a secure settlement process ensures sellers don't lose title until they're paid, within 7 days. Grain buyers benefit from more efficient accumulation given they are able to view parcels of grain ready for sale in a firm and live market. The exchange also ensures a robust paper trail of all orders and transactions. At time of settlement, appropriate levies, end point royalties, and any applicable fees associated with the storage provider are deducted, cutting down the paperwork into one simple transaction. Our aim is to foster competition at the farm gate and ultimately improve returns by creating an efficient market where all supply chain participants benefit. Think of Clear Grain Exchange as the share market for Australian Grain. Disclaimer: CAUTION: This email, and any files transmitted with it, may be confidential and may also be legally privileged. If you are not the intended recipient, any use, review, dissemination, distribution or reproduction of this message, or its attachments, is prohibited. We accept no responsibility or liability for viruses or anything similar in this email or any attachments. If you have received this email in error, please notify the sender immediately and destroy the original message. Any information in the content of this email or attachments is general in nature without regard to any individual objectives, financial situation or needs. We exclude, to the fullest extent permitted by law, all liability for any loss or damage of any kind however rising in relation to this information, including any reliance on it or making any transaction in connection with any information or strategy mentioned in it. Don't want to receive emails from Clear Grain Exchange? You can unsubscribe from this list   CGX Trade Opportunities Report - May 08 May 08, 2017 Three lessons from last week: Market went up, then down…. Hopefully it goes up again? - Having your offer in the market means you don’t miss opportunities regardless of how short lived they may be. Trades on CGX are often in excess of the public bid - Public bids don’t often reflect moves in offshore values, however actual trades can and do. Your grain can trade "above" your offer price on CGX - Your grain can never sell lower than your offer price, however it can sell higher!  FREE TO REGISTER - FREE TO OFFER Market went up, then down... Hopefully it goes up again? Last week the wheat market went up but then fell away again. We are all guilty of trying to pick the top in markets and at times missing the selling opportunity. This is often referred to as the “hope, greed, fear, panic" cycle which can result in inaction.  A consideration could be for growers to split their offer parcel. For example, rather than having 1,000t at a single offer price you could split this into 250t parcels with prices that step up. This ensures you don’t miss an opportunity at the price you originally wanted which provides some cashflow and downside protection if it is a short-term spike, but can still benefit if the market continues to rally.  Lesson: Having your offer in the market means you don’t miss opportunities regardless of how short lived they may be! Public bids not reflecting offshore moves but trades can In most (if not all) locations around Australia, the “public bid to growers” did not reflect the implied movement in CBOT and the A$ last week. However, trades on Clear Grain Exchange were often reflecting the full move. For example, the below table outlines the best ASW1 public bid at Murtoa GrainCorp through the week as collected and provided by Profarmer vs actual trades on CGX vs the move implied by CBOT and A$ the night prior (Note these implied moves are also provided by the Profarmer “Morning Market Insights” report). Lesson: This demonstrates the value of being proactive and engaging the market with your offer price as buyers may have a higher willingness to pay then advertised by their public bid! Your grain can trade "above" your offer price on CGX On CGX your grain can not sell below your offer price; however your grain can sell above that price. The CGX system will always trade grain at the highest bid price so long as it is equal to or above the offer price. For example; on Tuesday morning after the +A$10/t move in CBOT wheat futures, buyers were jostling between each other to secure tonnes. This resulted in buyers out-bidding each other and pushing prices higher in order to secure tonnes.  On Tuesday around 9,000t traded on market open at 10am AEST, and more then half of these tonnes traded above the offer price set by growers!  Refer the "Market Spreads Screenshot" below as at 02/05/17 9:50 am AEST. Hence one parcel traded $9/t above the grower's offer price when the market opened - a nice surprise for the grower!! Secondly the public bid only moved up $3-5/t on the day! Lesson: A trade can only occur at a price that you are happy with (ie. your offer price or better). The functionality in CGX helps to ensure growers receive true value for their grain.          If you need help in registering an account or offering your grain please don’t hesitate to contact the team. P: 1800 000 410 E: support@cleargrain.com.au Click here to view market spreads Trade summary Favourable movements in CBOT wheat futures and the A$ during the week meant buyers were able to pay up to grower offer prices. 45,742t traded on Clear Grain Exchange last week with 17 grades of predominantly wheat and barley trading across 11 port zones and up to $22/t above the best public bid to growers. Follow us on twitter and get live notification of opportunities! @ClearGrain Click here to view recent trades About Clear Grain Exchange Clear Grain Exchange is an independent online platform where grain sellers can offer their grain, at their price, in an open market to all buyers. If the grain trades, a secure settlement process ensures sellers don't lose title until they're paid, within 7 days. Grain buyers benefit from more efficient accumulation given they are able to view parcels of grain ready for sale in a firm and live market. The exchange also ensures a robust paper trail of all orders and transactions. At time of settlement, appropriate levies, end point royalties, and any applicable fees associated with the storage provider are deducted, cutting down the paperwork into one simple transaction. Our aim is to foster competition at the farm gate and ultimately improve returns by creating an efficient market where all supply chain participants benefit. Think of Clear Grain Exchange as the share market for Australian Grain. FREE TO REGISTER - FREE TO OFFER Disclaimer: CAUTION: This email, and any files transmitted with it, may be confidential and may also be legally privileged. If you are not the intended recipient, any use, review, dissemination, distribution or reproduction of this message, or its attachments, is prohibited. We accept no responsibility or liability for viruses or anything similar in this email or any attachments. If you have received this email in error, please notify the sender immediately and destroy the original message. Any information in the content of this email or attachments is general in nature without regard to any individual objectives, financial situation or needs. We exclude, to the fullest extent permitted by law, all liability for any loss or damage of any kind however rising in relation to this information, including any reliance on it or making any transaction in connection with any information or strategy mentioned in it. Don't want to receive emails from Clear Grain Exchange? You can unsubscribe from this list