Clear News & Updates

CGX Trade Opportunities Report - May 11

May 11, 2020

Highlights

  • Buyers searching but struggling to pay offer values - Buyers can often bid better than public bids but struggling to get up to grower offer values.
  • Grain still trading at grower target prices - if you don't have your grain on offer it has no chance of trading at the price you want.
  • You can access your trade settlement notes online from you CGX account - login and go to "My Sales", select the trade and click on "Notices".
Please call us on 1800 000 410 for any queries

Trade stats for last week

  • 14 buyers purchased grain on CGX - more searching
  • 11 grades traded
  • 4 commodities traded - wheat, barley, lupins, oats
  • 8 port zones traded across VIC, NSW, SA, and WA
  • 2 seasons traded - 19/20, 18/19
Buyers searching but different price ideas to growers for now

Demand remained relatively fleeting last week as buyers struggle to make grower target prices work. Grain exporters continue to sit on the sidelines as Australian grain remains expensive to compete into many major exporting destinations.

Corn prices have also collapsed recently in-line with oil prices due to less ethanol demand. This is seeing Asian demand for feed wheat and barley being displaced by cheaper available corn.

The table below demonstrates price comparisons of Australian and Black Sea wheat and barley versus south American corn into North Asian countries such as South Korea, Japan, Taiwan and China. All are large importers of feed grains and can use corn when the price is right. 



This same trend is taking place in other markets that can substitute feed wheat and barley for corn, notably Europe and north American feed markets.

As such, lower grades of wheat and barley from Black Sea, Europe and the US are now looking for additional demand, meaning they are more aggressively competing with Australian grains and pressuring global values lower. 

In Australian domestic markets we are seeing barley displace wheat in rations that can take it such as pork, beef and diary, given the large price discount. 

The Queensland feed lot market seems to be well supplied in the short term with vessels being discharged from both WA and SA. If and/or when this domestic market has to recharge the pipeline again prior to harvest, Victoria will potentially be a competitor to WA grain. Values in Victoria have drifted lower and, on paper at least, Victorian wheat and barley is cheaper than WA into Queensland today. 

It is also worth noting that the positive start to the 2020/21 seeding program across large parts of NSW, VIC and SA means a green pick has displaced feed grain demand on many farms. 

14 buyers purchased grain through Clear Grain Exchange last week though there were more buyers searching for grain on offer and often placing strong live bids in the exchange relative to best public bids. This may suggest there is more interest in buying grain, though not at the values growers were targeting.

If you are looking to sell your grain quickly you may need to adjust your offer closer to bids to attract a sale. 

Below are examples of trades last week on Clear Grain Exchange versus the best public bid. 







The charts above demonstrate the value of growers "offering" their grain at the price they want on an independent and secure exchange.

More growers and their agents (consultants and advisors) are actively offering grain for sale on the exchange having seen trades go through at strong values relative to best public bids. If you use a marketing consultant, ensure you talk to them about Clear Grain Exchange. You can authorise them to act on your behalf on the exchange to manage your offers and sales!

By offering your grain at your price on the exchange it helps to create demand for your grain because buyers can see it and crunch their numbers to try and buy it. This can often result in strong bids against your grain well above the best cash or contract price advertised.

Further, as long as you have an offer in the market you will be notified of trading opportunities happening in your port zone for the grade you have on offer. If you are looking to move your offer quickly it is always a good idea to adjust your offer closer to recent trades or indicative prices to give it the best chance of selling.

See summary charts of last week's trades below. If you would like more detail on what has traded please click the recent trades link below or feel free to call the CGX team or your Authorised Agent.





Click here to view recent trades

Access your CGX paperwork online

To access your settlement notice for sales made through Clear Grain Exchange go to "My Sales", select the trade and click on "Notices".

This will provide all information of the sale including relevant deductions made from the sale proceeds such as End Point Royalties, statutory levies etc.

Please note this is accessible at all times from within your Clear Grain Exchange account and is in addition to the emails sent to you at time of your sale settling.
 

 

Protect yourself with Clear Grain Exchange

Once your grain trades in Clear Grain Exchange (CGX), the secure settlement process ensures you do not lose title of your grain until the buyer has paid.

This secure process is facilitated by an independent custodian so CGX never has ownership of grain or the funds, making CGX the most secure way to trade your grain.

And the best part is this secure process all occurs within a maximum of 7 business days!

All industry levies and end point royalties are automatically deducted and a trade settlement notice delivered simultaneously.


Secure settlement for cash pricing at GrainFlow

On the back of industry demand for payment security, CGX is now providing secure settlement for cash prices published at GrainFlow sites.
 
This means growers who want to sell to a cash price at the site can do so with the knowledge they will retain title of their grain until funds have been received in full via CGX’s secure settlement.
 
Now growers can accept a cash price with secure settlement over the weighbridge or transfer to a cash price from warehouse by simply looking for ‘CLEAR Settle’ next to a buyers cash price (e.g. ‘Arrow CLEAR Settle’ refer image).
 
Any grain sales made to a cash price with ‘CLEAR Settle’ next to it will be settled by CGX’s secure settlement facility so growers won’t lose title of their grain until paid.


 

   follow us on twitter & join the conversation

               @cleargrain for updates
               @cleargraintrade for live feeds of trades 


 
Forgotten your CGX password? Click here to reset

SMS feature 

By having your offer out there on Clear Grain Exchange you will receive notifications of 'trades' of the same grade and location as your offer so you can monitor the real market (rather than public bids), and remember you are anonymous - so don't feel silly about putting your price out there no matter how optimistic it may be!



 

Re-offer cancelled or expired offers

You can now conveniently re-offer your expired or cancelled offers via the My Offers tab by selecting “Closed” from the Offer Status drop down menu.

This feature was developed from feedback by users and will greatly improve efficiency of re-offering and help mitigate against making errors.


We encourage you to make the most of it and thanks for the feedback!

FREE TO REGISTER - FREE TO OFFER

There is no downside in offering your grain on CGX!

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 CGX team on the details below or your Authorised grain marketing professional.

P: 1800 000 410
E: support@cleargrain.com.au
 

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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