Agtechs join to help boost grower returns

June 13, 2020

Agtechs join to help boost grower returns


TWO of Australia's leading agtech businesses have joined together in order to boost grower returns.

Clear Grain Exchange (CGX), an independent electronic exchange and Grain Market, an easy to use price discovery and grain sale position management platform, have collaborated to integrate live market data from CGX into the Grain Market price discovery platform.

The collaboration allows both merchant bids and live bids available on CGX to be accessed by growers and their advisors from within Grain Market's comprehensive grain pricing portal and mobile app.Recent trades on CGX will be displayed in Grain Market, ensuring users are aware of where the market is trading.

CGX managing director Nathan Cattle said the independent grain exchange operator was pleased to be working with another technology business striving to improve price discovery in WA grain markets.

"Grain Market has established itself as a primary price discovery and contract management tool for many WA growers and their advisors," Mr Cattle said.

"Often grain is being bid or trading on CGX at different values to those advertised by merchants and this integration ensures Grain Market users are aware of that and can act accordingly".

"CGX aims to make it easier for all grain buyers to purchase direct from growers whilst ensuring growers credit risk is better protected at all times.

"We believe this will generate better returns at the farmgate and is aligned with the team at Grain Market and the service they provide to their users."

The purpose of CGX is to improve economic returns at the farmgate by making markets more efficient and secure. If grain trades, a secure settlement process ensures growers do not lose title until they are paid, within seven days.

On the other hand, Grain Market provides a real-time price monitoring and notification service that is fully customisable and accessible via a web portal, iOS and android mobile app or SMS messaging.

The Grain Market platform has comprehensive management systems which assists growers, advisors and brokers to manage grain sales and monitor their positions.

Grain Market chief executive officer Kim Povey said that having bids and trades from CGX in Grain Market allows users to better capitalise on demand generated by CGX.

"When a CGX bid triggers a grower's target price, the Grain Market system notifies the grower or their advisor who can create an offer at their price on CGX, " Mr Povey said.

"By placing offers on CGX, growers can draw out bids for their grain and effectively help create demand.

"Our advisors, brokers and their grower clients rely on Grain Market to quickly summarise grain prices available to them, the addition of bids and trades from CGX together with public and private merchant bids allows users to see all opportunities in one place."

The number of WA growers and their advisors using CGX as a mechanism to sell grain has been continuing to grow at a rapid pace and this integration allows the Grain Market platform to step up to a new level of service.

Grain Market has managed more than 28 million tonnes of grain contracts to date, while CGX has traded and settled securely more than 7.7mt on its electronic exchange.

The integration between businesses went live earlier this month.

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