Clear News & Updates

CGX Trade Opportunities Report - April 23

April 23, 2018

Highlights

  • Barley, Canola, Sorghum continue to lift - Barley is tight so name your price; can canola reach pre-harvest levels? Sorghum trades strong.
  • Volatile wheat market creates opportunity - 16 buyers bought wheat last week representing strong appetite by buyers to accumulate.
  • The power of growers offering at their price - Trades are occurring at values growers wouldn't otherwise have known about!
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Buyers continue to engage in choppy market

Trade stats for last week:

  • 23 buyers bought through CGX - more searching
  • 16 grades traded
  • 4 commodities traded - wheat, barley, canola, sorghum
  • 11 port zones traded around Australia
  • 3 seasons traded - 17/18, 16/17 and 15/16


Volatile CBOT wheat futures over the last couple of weeks has provided growers opportunity to get sales away at their target prices. Buyers have been able to bid up values partly on the back of higher futures whilst dry conditions in most parts of Australia is underlying local demand.

See chart below from Profarmer's Morning Market Insights. The grey area depicts the value of nearby CBOT wheat futures in A$/t.



Wheat made up the majority of trading last week at 60% of all tonnes traded with 16 different buyers purchasing 11 grades of wheat. The chart below shows the volatility in wheat values creating opportunity for growers to get sales away at their target prices.



Barley took a back seat this week in terms of traded volume making up just 7% of all trades (vs 27% last week). This appears to be a function of the availability of barley left unsold rather than buyer appetite for the commodity. The barley trades that did occur last week were at very strong values compared with the best public bid - see chart below as an example.

Hence if you have barley, it's in scarce supply and in high demand, so name your price and get it on offer!



Canola made up a higher percentage of all grain traded last week at 17%. There still seems to be a bit of canola held by growers given many have been waiting for values at or near those that were achieved at the beginning of harvest.

The good news for those holding canola is Canadian canola trading on ICE futures, a global benchmark for canola values, are back at pre-Australian harvest levels. See chart below from Profarmer, the grey area depicts the values in A$/t.



This should help buyers lift the price they can pay for Aussie canola. The chart below highlights that Aussie cash prices are not reflecting the full increase in ICE canola futures "yet", likely due to the relatively large Australian crop of last year keeping a lid on values. Although, with current market dynamics (higher futures and dry Australia) having your offer ahead of the market is a good chance of attracting interest.



Sorghum is the other commodity attracting a heap of attention. China imposing a tariff on US imports and Australian dry conditions are ensuring buyers are willing to engage if they can see the offer. See chart below.



23 different buyers bought grain through CGX last week highlighting the appetite by many buyers to accumulate grain.

Have your offer in Clear Grain Exchange as sometimes you don't know what you don't know! There may be a buyer out there looking for your grade at your location and ready to buy it at your price if they know it is there.

Below is a summary of trades on CGX last week, please follow the link to view trades in more detail. 

Click here to view recent trades

Offering your grain can pull out a stronger bid!

Often we are seeing firm bids against offers at strong values relative to public bids however not quite at the levels growers are seeking with their offers.

Below is an example of such a case, the best public bid is $299.25 (as collected by Profarmer), the growers offer is $308. A buyer has seen this offer and has placed a firm bid of $305. This provides those growers the opportunity to hit those stronger bids if they are wanting to secure some cash or maintain their offer at those levels on the expectation of a future lift in values if they wish. 

Hence by having your grain on offer in CGX it creates the opportunity! 

Forgotten your CGX password? Click here to reset

There is no downside in offering your grain on CGX!

It’s free to register and free to offer your grain on Clear Grain Exchange. You can edit or cancel your offer at any time for free before it trades. 

A trade can only occur at the price you put on it (or higher), 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!

You can also authorise your trusted grain-marketing professional to act on your behalf on the exchange.

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

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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.

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