Demand provides opportunity to be proactive with your price
In last week’s report we highlighted the lift in ASW1 wheat values which is now trading at much smaller price discounts to APW1 and other higher protein grades. This is now creating an increase in demand for the other wheat grades.
Strong demand has been driven by an intense export program out of Australia. A large part of this program has been ASW1 quality wheat and Feed barley. But as the values of ASW1 wheat lift closer to the other grades, the ASW1 demand is now flowing over to the better grades such as APW1 and H2.
As a result we saw a more even spread of trade volume between the major grades of ASW1, APW1, H2 and AGP1 wheat, and Feed barley on Clear Grain Exchange last week. Trades continue to go through well in excess of public bids across these grades.
Domestic end users are also actively buying on the exchange with lower feed grades such as F2-F3 barley and FED1-SFW1 wheat trading, along with a number of malt barley and milling wheat grades as feeders, maltsters and millers look to cover requirements.
When buyer appetite is strong, it is a market signal to have confidence in engaging the market with your offer price, rather than waiting for the public bid to reach the level you want. When buyers are keen to accumulate, often trades go through at values well in excess of public prices as buyers jump up and hit grower offers.