Clear News & Updates

Grain Exchange Opportunities - Feb 20

February 20, 2017

Free to register - Free to offer - Click Here
  • Grain Exchange concept gaining momentum - 84,860t traded on the exchange last week, the second largest week ever after the previous week of 92,243t.
  • ASW1, APW1, H2 wheat and Feed barley were in demand – high volume and trades going through well above public bids.
  • Demand exists for all grades and commodities – 27 different grades traded on CGX last week.
  • There is no downside in having your offer in the market – it can only trade at the price you put on it, and you can edit or cancel your offer at any time….. at no cost!
If you have warehoused grain – put your price on it and offer it
It was a diverse week of trade last week with 27 different grades trading on the exchange amounting to 84,860t trading in total, the second largest week in Clear Grain Exchange’s history following the largest week when 92,243t traded. 

The dominant grade was again ASW1 wheat (44,718t trading) as buyers jumped in and hit grower offer prices to accumulate for the strong export programs out of Australia. H2 and APW1 wheat also traded higher volumes followed by Feed barley and Canola.

Importantly trade values were reflecting the offer prices set by growers, which were often higher than the best public bid as provided by Profarmer. Without the grain on offer, these trades may not have eventuated as buyers can’t see what is available for sale at what price, and growers don’t know the willingness of buyers to pay for their grain.

Of note for many growers will be malt barley finding sporadic demand at healthy offer prices. Six different malt barley grades across NSW, Vic, SA and WA traded last week. This is welcome news for growers still holding malt given demand for malt generally peaks somewhere in the lead up to or during harvest with malt values coming back towards Feed barley prices after harvest as buyers finalise purchases. Hence for those holding malt, the exchange may be an effective way to expose your grain to remaining buyer demand.

Click here to view recent trades
What can we expect this week?
Price targets set by many growers have been achieved over the last couple of weeks on the back of strong buyer demand driven by two major factors:
  1. Australian grain has been winning export business so exporters have been accumulating the tonnes they have sold for export.
  2. CBOT wheat futures have rallied and tested the upper levels of the trading range, there is also reasonable carry being paid in the forward months.
CBOT wheat finished last week correcting lower after failing to push through the top of the trading range. Despite this you could anticipate we are likely to see volatility continue as the northern hemisphere crop enters the critical spring period.

Most importantly for growers is that Aussie grain still appears to be winning export business. This is what will fundamentally drive the willingness of buyers to purchase your grain. As exporters accumulate for ships they will buy different grades to blend and meet the specifications they have sold.

Hence if you have a price in mind, be confident to place it on offer for buyers to see and bid on, no matter what the grade or the parcel size.
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No downside in placing an offer at your price on the exchange
By having your parcel of grain on offer in the exchange, it is in the market for all buyers to see and bid on. Often trades go through at prices you may not have otherwise known about - the offer draws out the bid! 

It is free to place an offer at your price on the exchange, and you can edit or cancel your offer at any time. If a buyer were to call you directly with a special price that you would like to contract at, you can simply cancel your offer on Clear Grain Exchange and then do a contract direct with the buyer. 

Last week traded parcel sizes ranged from 2000t to just 6t across 27 different grades! Hence if you have some grain remaining in warehouse it may be worth giving the exchange a go, no matter what the parcel size or grade.

Setting up an account on the exchange is free, a trade can only occur at the price you put on it, 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.

Our goal is to be an industry platform that improves economic returns by creating an efficient market. 

If you need help registering an account or offering your grain on CGX, please don’t hesitate to contact the team
P: 1800 000 410
Weekly Trade overview
Free to register - Free to offer - Click Here
Phone 1800 000 410

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