Record-breaking day for Clear Grain

January 23, 2021

Record-breaking day for Clear Grain

farmonline

AN independent online exchange for buying and selling grain reached a record milestone last week after trading the most it ever has in a single day.

Clear Grain Exchange (CGX) had its biggest day on record, with 72,699 tonnes of grain traded last Wednesday, January 13.

It was also the second largest trading week for the company, with more than 130,000t of grain bought and sold in total.

On the day, 26 different buyers purchased grain through CGX and 32 buyers purchased grain through the week, plus there were many more buyers searching for grain on offer.

CGX managing director Nathan Cattle said the record day was a reflection of more growers getting comfortable with using the exchange and understanding how to get value out of it.

"We're not ones to jump up and down about the record, we've celebrated it a little bit, but for us the newsworthy part is the behavioural change we're starting to see with growers as they're becoming more comfortable with it," Mr Cattle said.

"We're investing a fair bit in our team and technology because it's on us to educate growers on how to get the best use of it and them feeling familiar and confident with it.

"A day like last week is reflective of a lot of hard work being done through the whole year and previous years and that's to help growers and consultants understand the value of the exchange."

The other side of the story to the record day was that there were a lot of active buyers which generated demand that growers wouldn't otherwise have had, which is the whole purpose of the exchange.

Mr Cattle said there was a lift in prices that had been driven by the international market.

"That's a great thing because we've been saying for a while now that Australian grain is cheap in the world versus our other competitors," he said.

"Growers are looking at it thinking that it's a strong overall number which is great historically, but we're actually still cheap when we compare against the US or the Black Sea and other major competitors into our major destinations.

"The biggest thing that means is that the price doesn't have to get cheaper to win the export business and there could be further improvement if growers ask a bit from the market and if they sell at an orderly pace to match buyer demand."

While the lift in prices certainly helped to attract demand on the exchange, there's no denying that CGX's business model goes a long way.

The company has a clear focus on being an independent exchange and technology business which is trying to make it easier for buyers to find sellers and sellers to find buyers.

"We're not a buyer, a seller, a consultant or a broker, we're simply an exchange that all of those parties can participate on to get the full value for grain," Mr Cattle said.

"We are relatively new - four years ago a lot of people were asking who Clear Grain Exchange was, but now if you ask a room most people know of us and half probably know how to use it.

"Hence there is still plenty of work for us to do to educate growers and their consultants on the value of them offering grain at their price in an independent exchange so it's easier for all buyers to try and purchase."

https://www.farmonline.com.au/story/7096207/record-breaking-day-for-clear-grain/

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