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CGX Trade Opportunities Report - June 12

June 12, 2018

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Highlights

  • Buyers and sellers waiting for rain forecasts to eventuate - buyers buying as they need, many growers still feeding livestock.
  • Should we be keeping an eye on international values? - Short answer is yes, longer answer depends on where you are located and the weather.
  • May trades averaged "$8/t" above best public bids - CGX traded over 102,000t in May averaging $8/t above Profarmer's best public bid. 


Grain markets maintain a local focus

Last week saw both buyers and sellers waiting for rain forecasts to eventuate before making any major decisions regarding grain trading. Buyers were looking for grain but only buying as they need given the run higher in values recently making them more cautious on continuing to push prices higher.

Many growers on the other hand were continuing to feed livestock and so any grain on hand remained tightly held until they receive some rain in the bank. Hence most growers were reluctant to change their target prices with some also looking to hold grain into the new financial year.

Trade stats for last week:

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


Example: Feed barley at Ouyen traded $284.50/t last week ($327.25/t Melbourne port equivalent)


Should we be keeping an eye on international values? Short answer is yes, longer answer depends on where you're located and what future weather does. Those in WA and SA and likely parts of Victoria will still be exporting grain and so need to compete with other exporters. Hence movement in international values is a probable leading indicator for values here.

Below are some charts from Profarmer's Morning Market Insights which is sent each business day before 8am AEST. Whilst CBOT wheat values have been volatile at higher values recently, the spring crops of CBOT corn and soybeans are back to January levels and ICE canola futures have also lost some of the gains it has been holding onto recently.









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

May trades averaged "$8/t" above best public bids

Clear Grain Exchange traded over 102,000t in May averaging $8/t above the best public bid as collected by leading independent analyst Profarmer.

Trade stats for "May":

  • 44 buyers bought through CGX - more searching
  • 38 grades traded
  • 8 commodities traded - wheat, barley, canola, oats, lupins, faba beans, chickpeas, sorghum
  • 13 port zones traded around Australia
  • 3 seasons traded - 17/18, 16/17, 15/16


There was plenty of appetite for grain in May as Aussie crop conditions remained dry and off-shore values traded at higher levels. This saw Australian buyers searching for grain crunching their numbers and trying to make grain on offer work on their books.

Often buyers could make it work and growers were able to achieve their target price regardless of public cash and contract bids being much lower in many cases.

Hence the message is to have your grain on offer in CGX at the price you want for your grain because sometimes you don't know what you don't know. Your grain may work for a buyer and at all times with CGX you are protected by:

  • anonymity - hence no price is a silly price because no-one will know it is you
  • secure settlement - if your grain trades you won't lose title until you are paid
  • flexibility - you can edit or cancel your offer at anytime before it 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
 

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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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