Clear Grain Exchange (CGX) has recently launched a new electronic market for grain stored on-farm.
igrainX expands the CGX ecosystem, enabling growers, grower agents, and buyers across Australia to seamlessly trade grain stored on-farm with minimal risk.
The launch of igrainX complements the existing CGX market for warehoused grain by providing industry a single independent exchange to handle transactions for grain stored on-farm and in-warehouse.
igrainX is accessed via a CGX user’s online account and makes it easy for growers to offer grain stored on-farm for sale at prices they’re targeting.
All buyers can see grain offered for sale and actively bid to try and secure it in a live market, which attracts more buyers and ensures buyers with the highest demand get the grain.
Importantly all grain sales made through igrainX are settled by CGX’s best in class secure settlement and payments service to protect growers in transactions.
In the case of ex-farm grain contracts through igrainX, growers are protected by credit insurance and CGX invoicing buyers and collecting payments on their behalf.
CGX managing director Nathan Cattle explained igrainX is a natural extension of CGX services to Australian grain growers and industry.
“We’ve had positive feedback regarding igrainX from growers and industry since launch”, Nathan said.
“Our aim is to improve farm gate returns by creating more efficient markets where all supply chain participants benefit.
“Growers with grain stored on-farm can now access all buyers while being protected. Buyers gain a wider supply network and deeper visibility on prices growers want”.
It’s a scenario that creates value for industry as evidenced by more than 10,000 growers using CGX to sell their warehoused grain to date and more than 400 buyers registered.
“Regular feedback from users has been for us to help transact grain stored on-farm and create a more efficient market where growers have a say in the price of their grain, similar to the role CGX has played for warehoused grain”, Nathan said.
Independence is vitally important to ensure markets operate efficiently, without bias, to encourage more buyers to try and buy Australian grain.
CGX is not a buyer, seller or advisor of Australian grain. Rather CGX is a technology business operating an exchange and enabling growers to find their grain’s true price.
The launch of igrainX follows CGX’s acquisition of the igrain business in July 2023 that facilitated trade of grain on an ex-farm and delivered basis.
Key features:
- Growers can offer grain stored on-farm for sale at their price to all buyers.
- Bids and offers in igrainX are firm and anonymous, and trade on a first-in-first-out basis during market hours (same as CGX).
- Counterparty insurance (igrainX Insure) covers all offers and resulting grower grain sales enabling offers to be firm and attracting as many buyers as possible.
- CGX settles igrainX trades, invoices the buyer, collects payment, and pays the grower minus any levies, EPRs, etc.).
- igrainX is available directly from within CGX, ensuring one exchange for grain stored on-farm and in-warehouse.