Article by: Hari Yellina
The Clear Grain Exchange has set a number of daily records in recent weeks, indicating that farmers’ post-harvest commercial sales have increased. Farmers are seeking various opportunities to sell unpriced grain again after the summer holiday break, with large volumes passing through the online trading platform. On February 14, CGX transacted a total of 102,253 tonnes of Australian grain worth $38 million, setting a new high. It shattered the previous record of 74,291t, which had been established only 10 days before.
Grain growers are still hanging onto stocks, according to Brett Hosking, head of the Grain Growers Association. “There is still a lot of grain unsold, and farmers are waiting for prices to rise to the levels they believe are justified in light of world prices,” Mr. Smith said. Growers were finding good value on the exchange, according to CGX managing director Nathan Cattle, especially considering the increasing number of buyers available. “There are now over 20,000 grower enterprises registered on the platform,” Mr Cattle said. In fact, there are around 300 grain buyers and just over 100 grower agent or consultancy businesses registered. He further stated that people who had enrolled were actively using the exchange.
In 2021, the exchange saw 4,294 growers and 36 agency businesses sell grain, while 87 distinct purchasers buy grain. New users are increasingly using the exchange for price discovery while continuing to sell or purchase through traditional means.
“We appreciate the grain industry’s support,” Mr Cattle said, “and we feel our users are creating value that would otherwise go unrealized.” This is evidenced by the fact that the price of grains traded on the exchange is frequently higher than those publicised in the market through traditional channels like cash boards and advertising contract pricing. Grain will frequently trade on the exchange for $10-15/t more than the best announced bid for the day. CGX is in the midst of a massive technology update to support its expansion. Mr Cattle stated, “The release of our improved technology stack is exciting for us since it allows us to push forward and grow our products and services further.”