Demand reaching fever pitch!?
Trade stats for last week:
- 34 buyers bought through CGX - more searching
- 31 grades traded
- 6 commodities traded - wheat, barley, canola, oats, lupins, sorghum
- 11 port zones traded around Australia
- 3 seasons traded - 17/18, 16/17 and 15/16
There was strong demand for Aussie grain last week evidenced by the number of buyers engaging, the breadth of commodities and grades trading, and the value of trades often exceeding advertised public bids.
Take away message: Your offer draws out the buyers bid! If it wasn't for offers in CGX we may not have known buyers were willing to pay the prices achieved last week.
Movements in off-shore markets helped to push Aussie grain values higher. The Aussie dollar was lower, CBOT wheat was higher, and ICE canola is maintaining values after the March rally.
Beautiful chart - weakening A$ against US$ is good for Aussie grain values.
Wheat continued to make up the majority of trading on CGX last week at 74% of all tonnes traded. The commodity was in high demand with 26 different buyers purchasing 18 wheat grades (includes 4 durum wheat grades) at strong levels compared with best public bids (see example chart below).
Example - ASW1 Kwinana traded up to a $298/t FIS last week
See chart below from Profarmer's Morning Market Insights. The grey area depicts the value of nearby CBOT wheat futures in A$/t.
Barley made up a higher proportion of all tonnes traded this week at 11% (vs 1% and 7% last week and the week prior respectively) with 10 buyers purchasing the commodity. Offers were setting the price in this market given it's relatively scarce supply. Hence if you have barley name your price and have it on offer!
Example - F1 Woomelang traded $258/t delivered site ($294/t port equivalent)
Canola trades on CGX continued to be at strong levels relative to public bids. Demand for canola has been in spurts with buyers jumping in and purchasing as they need and then retreating to the sidelines again. ICE canola futures in A$ terms is holding at "early-harvest" levels which may continue to provide opportunity for growers to achieve better values then publicly bid.
Example - CAN Henty West traded up to a $500/t delivered site last week ($538.50/t port equivalent)
See chart below from Profarmer, the grey area depicts the value of ICE canola futures in A$/t.
Other examples of trades by commodity:
- Milling oats traded $270.50/t FIS Kwinana
- Lupins traded $305/t FIS Albany
- Sorghum traded $350/t Willow Tree delivered site ($373.75 port equivalent)
Old season grain (16/17 and 15/16) also traded on CGX last week often attracting current season values. If you are holding old season grain Clear Grain Exchange can be an effective way to offer and sell it.
Have your offer in Clear Grain Exchange as sometimes you don't know what you don't know! There may be a buyer out there looking for your grade at your location and ready to buy it at your price if they know it is there.
Below is a summary of trades on CGX last week, please follow the link to view trades in more detail.