SINCE joining Clear Grain Exchange (CGX) in October last year, I have seen more than 1.77 million tonnes sold through the independent grain exchange, with a third of the total volume sold in Western Australia.
It's great to see even more growers getting full value for their grain this season as we are well over our previous record of 1.2mt and more growers and their agents are setting up a CGX account.
I believe the volumes trading on CGX should continue to grow as buyers and sellers see the value CGX can add to their businesses.
One of the main reasons I joined CGX was that I could see they were creating a more efficient grain market which I believe is vital in helping growers achieve long-term sustainability.
CGX is an independent exchange open to all buyers, sellers and consultants and improves price transparency to create a more efficient grain market.
Having been a grain adviser in my previous role, I was used to dealing with multiple grain buyers.
However, when I started with CGX I was astounded with the amount (and types) of buyers buying grain on CGX.
Not only are there buyers that I had not heard of, but there are also buyers of grain who I would not have thought had any connection to agriculture at all.
For the 20/21 season there has been 35 different buyers buying WA grain through CGX, 82 nationally and more than 200 are registered to buy grain offered on the exchange.
I would hope the traded values do the talking for us here at CGX.
The above graph shows the traded values on CGX of APW1 and ASW1 in the Kwinana port zone as well as the top published cash prices according to Profarmer.
Over this period the average trade was $14 a tonne higher than the highest published bid.
The empowering part here is that growers are creating this value.
As an example, if growers hadn't offered their wheat on CGX at $346/t on July 2, growers may not have known buyers were willing to pay that price on the day.
Growers are generating that value by setting the price they want and offering it on CGX, so all buyers can see it and try to buy it.
Every grower and agent should have a CGX account as a tool to sell their grain.
Its free to have an account and doesn't cost anything to offer grain for sale on the exchange.
Growers and agents can edit the price and tonnage of their offer at any time before it sells.
Only if the grain sells there is a flat fee of $1.40/t to cover administration, staff, software development, and secure settlement which ensures growers retain title of their grain until they're paid within seven business days.
If you have any questions, please do not hesitate to contact the CGX team on 1800 000 410 or support@cleargrain.com.au.
- Peter Brennan is based in the Perth office and hails from a family farm at Wongan Hills.