CBH Group shipping slots dropped 20pc year-on-year

That capacity has been taken up by other traders, primarily Viterra, which has raised further questions as to why CBH is the only exporter to be offering prices even close to market parity.

Using data from October to December 9, as well as forward vessels which haven't shipped yet but have been named, it can be revealed that overall exports out of CBH ports from October to December are up from 3 million tonnes in the same period last year to 4.8mt, representing a 62pc increase.

Looking at the five-year average, that number is even higher, with overall exports having increased by 93pc from 2.5mt.

Of that total capacity, CBH's Marketing and Trading (M&T) division shipped 2.4mt from October to December, which is up 16pc on last year's 2.1mt and 62pc on the 1.5mt five-year average.

While the amount of overall grain exported has increased and CBH undoubtedly still has the largest majority of shipping slots, its share of the shipping pie has decreased by 20pc, going from 70pc last year to 50pc this year.

Australian Crop Forecasters senior insights manager James Maxwell said the data showed CBH had shipped a lower proportion of all tonnes for October to December this season.

"Everyone else has either the same or a greater share of exports this season versus last," Mr Maxwell said.

"All except Viterra have a lower proportion than average, but there are more exporters this season so that explains part of it.

"But CBH does seem to have lost the most market share at least in the first three months."

On the other hand, Viterra's exports as a proportion of total exports out of CBH ports from October to December has increased by 13pc year-on-year and is now at 31pc.

Last year, Viterra exported 500,000t from October to November and this year, that has risen by 175pc to 1.5mt.

For its part, Viterrra declined to comment on both its involvement in the shipping picture and the prices it offers WA farmers for grain.

CBH and Viterra are without a doubt the biggest players, with Australian Grain Export (AGE) the next closest at 6pc of overall exports, up 2pc on last year from 100,000t to 300,000t.

Despite multiple attempts by Farm Weekly to contact AGE and get comments on its shipping and pricing strategy, the trader did not return any calls or emails.

In terms of the other traders with any notable share of the overall exports, Cargill/AWB and GrainCrop both saw a 1pc rise year-on-year, with 5pc and 3pc respectively for October to December.

READ MORE:

The former declined to comment on its share of the shipping equation, while GrainCorp general manager of international trading Don Campbell said consecutive seasons of high-volume harvests had created strong demand for export services on both the west and east coasts.

"Our trading team in WA enjoys originating grain from local growers to support our operations as a major national exporter, and we look forward to increasing our service to growers in the years to come," Mr Campbell said.

"GrainCorp also operates oilseed crushing facilities in Pinjarra, used to produce canola oil and canola meal, to increase our local value add."

"We also commend the recent announcement from CBH to increase the co-operative's standard-gauge locomotive fleet, which will support the industry's ambitions to move more volumes through the supply chain."

The remaining 5pc of overall exports for the period was split between Brahman, Agrex, Louis Dreyfus Company, Emerald and Toepfer.

When it comes to pricing over the past six to eight weeks, CBH has often been offering prices more than $200 per tonne higher for canola than its competitors.

CBH was only after limited tonnes which at times saw a limited amount of buyers able to actually access bids for their grain at these prices, but regardless it was a goldmine for those growers able to tap in at the right time.

A spokesperson for CBH said the co-operative had been transparent regarding M&T's reduced shipping capacity this season compared to previous years and made known the increased number of traders in the market.

That along with record consecutive harvests, contributed to the development of M&T's dynamic pricing strategy.

"Through this strategy we have sought to implement co-operative based initiatives to drive value for growers and support their grain marketing plans," the spokesperson said.

"This includes offering highly competitive market leading cash prices and putting in place various levers - such as the staggered release of pricing by zone, 200t limits, two-day contract halts triggered by 40t limits - to provide more opportunity for more growers to contract with us.

"October 2022 was CBH M&T's largest total October accumulations since 2014."

For APW1 at Kwinana on November 19, CBH was offering $453/t, while Cargill was at $390/t and AGE at $375/t.

For canola on the same day, the highest bid was again from CBH at $852/t, while AGE was more than $200/t lower and $630/t.

A month later and not a lot had changed.

On December 19, CBH offered $448/t for APW1 at Kwinana, whereas Cargill was offering $390/t and AGE $375/t.

The gap on canola was also similar, with CBH offering $882/t and Cargill $703/t.