- 29 buyers purchased grain through CGX last week - indicating they are eager to search for parcels on offer, crunch their numbers and try to buy.
- 26 different grades traded across 5 commodities - grain is grain in many areas meaning all grades and commodities are in demand.
- 2018/19 season grain also gaining interest - offers of new season grain are increasing in the west.
- Tonnes traded averaged $5.20/t above public bids this season - if buyers don't know your grain exists, they can't bid for it! Your offer creates demand.
Demand for grain remains hot
Trade stats for last week:
- 29 buyers bought through CGX - more searching
- 26 grades traded
- 5 commodities traded - wheat, barley, canola, sorghum, lentils
- 14 port zones traded around Australia
- 2 seasons traded - 17/18, 16/17
29 different buyers purchased grain through the exchange last week indicating they remained eager to search for parcels of grain for sale as dry conditions in many areas of eastern Australia continue to bite.
The breadth of grades and commodities trading implies grain is grain in many areas with many feed buyers simply happy to get their hands on something that can be worked into their rations.
This meant any end-users looking for food consumption had to pay noticeable premiums to secure the quality grades - even if it's not reflected in the public bids.
See below H2 wheat at Gilgandra NSW traded at $381.20/t last week versus APW1 trading $370/t the day before despite the best public cash or contract bid being very similar at $354/t.
Hence no matter what grade you have, if you have a price in mind you would sell it for, offer it on the exchange so buyers can see it, crunch their numbers, and try and make it work. You are protected by anonymity and secure settlement so no price is a silly price!
Wheat made up 67% of all grain traded on Clear Grain Exchange last week, canola 20%, barley 11%, sorghum and lentils 1% respectively.
If we look at where the trades were located by state, Victoria made up 50% of all trades last week, followed by Western Australia at 29%, New South Wales at 17%, South Australia and Queensland at 2% respectively.
Relatively sharp execution costs and a friendly supply chain operator is making the west an attractive origin to source grain for the dry areas of Eastern Australia with high demand requirements.
This is flowing into activity on new crop (2018/19 season grain) in the west as growers start to list more parcels for sale at the price they want.
Kwinana, Albany and Esperance port zones all traded at strong numbers relative to the best public bid advertised on the day last week - see below example
17/18 Kwinana APW1 wheat traded up to $331/t FIS last week despite the best public bid reaching just $315/t.
Hence more grain on offer helps to generate more buyer demand. If buyers don't know your grain exists, they can't bid for it!
So far this season tonnes traded on Clear Grain Exchange have averaged $5.20/t above the best public bid as collected by leading independent market analyst Profarmer.
Below is a summary of trades on CGX last week, please follow the link to view trades in more detail.