Clear News & Updates

CGX Trade Opportunities Report - April 10

April 10, 2017

Highlights:

  • GrainCorp extends delivery windows into farmDirect – the window to deliver ex-farm grain into GrainCorp sites has widened due to good interest from growers and buyers.
  • CGX trading above public bids at re-opened GrainCorp sites – trades on CGX have averaged $3.60/t above the best public bid at sites GrainCorp has re-opened for deliveries!
  • What's going on with demand for your grain? – we are still seeing activity on the exchange as buyers jump up and meet grower offer prices when they require it.
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CGX trading above bids at re-opened GrainCorp sites

GrainCorp have confirmed they will be extending the window to receive ex-farm deliveries into their pilot farmDirect program. The table below outlines the GrainCorp sites re-opened for deliveries with appropriate contact details as supplied by GrainCorp.

Growers that offered their grain via Clear Grain Exchange averaged prices $3.60/t above the best public bid (as collected by Profarmer) at sites being re-opened by GrainCorp as part of farmDirect in 16/17. This may be helpful for growers evaluating whether to deliver to farmDirect. 

At an individual site level, trades on CGX have averaged better values than the best public bid at all 13 re-opened sites (except Corio which has not yet traded on CGX in 16/17). Of specific note is GrainCorp’s Rainbow site averaging $8.09/t above the best public bid, Murtoa averaging $5.97/t above, Yarrawonga $4.04/t and Barellan $3.88/t. Parkes Sub and Junee Sub have also averaged strong trades at $3.64/t and $3.35/t above the best public bid respectively.

This value is created by growers being proactive and offering their grain at their price and letting buyers bid on it, rather than being reactive to buyer bids. 

GrainCorp-CGX system integration makes it easy!

The system integration between GrainCorp and Clear Grain Exchange creates a seamless transaction process which is easy to use and promotes connectivity between the grower and buyer and ultimately return value at the farm gate! 

When logging into CGX growers are able to view their stocks when placing their offer. When your offer trades all stock transfers and payment of statutory levies, end point royalties etc is automated. Additionally Clear Grain Exchange now trades on Delivered site pricing (FIS in WA) rather than the old FIS shrunk tonnes pricing structure. This means it is very easy for growers to compare values and offer your grain at your price on the exchange. 

In a season where values bid to growers have largely been driven by exporters, GrainCorp sites provide a good mechanism for growers to access this demand via securing your quality and then offering your grain via a platform like Clear Grain Exchange. 

Timing is also important with growers hopefully able to make deliveries ahead of planting and accessing some export demand before middle of the year when northern hemisphere crop becomes available. 

Click here to view recent trades

What’s going on with demand for your grain?

14 grades of 5 commodities across 10 port zones traded on Clear Grain Exchange last week. Whilst weaker CBOT wheat futures over the past month is pressuring bids to the downside, we are still seeing activity on the exchange as buyers jump up and meet grower offer prices when they require it.

Demand remains for your grain as exporters and domestic users continue to cover off commitments. Australian grain is being exported at a record pace and buyers continue to search for parcels as they execute exports. Domestic users continue to buy as they need it.

The unknown is whether export demand for your grain will remain into the second half of this year? The short money would be on Aussie exports slowing down as northern hemisphere supply comes on line from middle of the year. Although this will depend on the northern hemisphere crop production prospects which still have some way to grow yet. 

The USDA will provide their updated world supply and demand estimates this week which will give the market some further insight into 17/18 grain and oilseed balance sheets. Hence there could be some volatility on the back of this, plus conflict in Syria, and hopefully the Aussie dollar can continue to slide lower, which may provide selling opportunity for old crop stock.

Even if the public bid price is not at values you want to sell at doesn’t mean you can’t still offer your grain at the price you want. This way you won’t miss any potential opportunities for it to trade if a buyer is searching for that particular grade at that particular location.

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Need help registering an account or offering? Call us

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
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