Aussie grain well priced in global markets

This was creating opportunity for many growers to achieve their price targets on sales.

Despite the volatility and general improvement in grain prices more recently, the good news is Australian grain continues to be the cheapest in the world led by grain in eastern Australia.

This is good because it is maintaining very strong demand for Australian grain indicated by 24 different buyers purchasing grain through Clear Grain Exchange (CGX) last week and more searching for grain on offer.

The table shows indicative wheat and barley values as at the end of last week in United States dollar terms on a Free on Board (FoB) basis ex-Eastern Australia and WA versus our major competitor origins of Black Sea, Argentina and the US Pacific North West.

The table then provides a comparison of values from those origins delivered to the major importers on a Cost and Freight (CnF) basis.

You can see both wheat and barley out of Australia remains the most competitive into the major consumption areas of Asia and the Middle East for April 2021 delivery compared to our competitors.

The result is plenty of buyers remain eager to participate in purchasing your grain, and often grain is trading well in excess of best public bids.

Grain in the Eastern States remains an attractive proposition for many buyers given its relative value to the west, strong domestic demand profile and optionality to the export market through container, traditional bulk and alternative bulk supply chains through the year.

As a result, there have consistently been much stronger bids and trades on CGX than those available on cash boards or indicatively bid for contract through New South Wales and Victoria.

South Australian and WA grain continues to be sought, despite its premium to the Eastern States.

This is mostly a result of supply chains in those States enabling grain to access the near-by demand more readily, and the fact that grain in South Australia and WA continues to price competitively into our major destinations versus elsewhere in the world.

Wheat grades are regularly attracting higher values on the exchange than best cash and contract bids are indicating.

For example, the major wheat grades such as H2, APW1 and ASW1 have consistently been trading $10-15 a tonne better through the Port Adelaide zone.

For growers wanting to engage the current market to secure price but defer payment, you can achieve this through CGX.

When you defer payment of your grain sale through CGX, your money is held within the secure bare trust in your name.

This means you can access it at any time and provides the ultimate flexibility and security for growers.

For growers who want to defer delivery of their grain as well as defer payment, you can offer grain at the price you want for delivery in forward months.

Australian grain is in demand.

Make sure you have your grain on offer at the price you want so all buyers can see it and try to buy it.

There are plenty of buyers interested in buying your grain, ensure you achieve its full value.

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