Online grain marketplaces are gathering pace as growers look for the best prices and flexibility when selling their grain.
Just recently, Clear Grain Exchange, which is 30pc owned by Elders, had its busiest trading week for the 2022-23 Australian season, seeing 385,000 tonnes traded through the exchange.
While Queensland only accounts for a small portion of its trade, the site has still seen 50,000t traded across five commodities in the state for the 2022-23 season.
Electronic trading platforms like CGX, mi farm and igrain aim to offer an alternative to grain brokers and direct deals with buyers.
Central Queensland farmer Ian Hutchings grows wheat, chickpeas and sorghum at his Jambin property Lorraine and has been using CGX for a few years now.
"The main attraction for me is that I get paid before I lose title to the grain," Mr Hutchings said.
If grain sells, growers are protected by a secure settlement process whereby they retain title of their grain until funds are secured.
Mr Hutchings said the service formed one part of a multi-pronged approach to selling grain.
"I don't sell all of my grain on it, because in my opinion, there's not enough buyers out there yet. It's a chicken and an egg thing. If growers don't use it, then buyers don't go there looking for the grain," he said.
The grower also uses brokers and is finding himself doing more direct sales.
"The traders tell them what they want and the brokers talk to me to see whether I want to sell for that sort of money. I also have some customers that I deal with directly, and that part of it is growing."
CGX managing director Nathan Cattle said the market was now more familiar with the exchange and actively using it to create value in the industry.
"We feel the benefits of a more efficient market are better understood by all participants in the grain industry," Mr Cattle said.
"On the seller side, the ability for growers and their agents to set the prices they want and plan their sales according to their specific needs has helped simplify the selling process so they can make better decisions.
"Buyers are benefitting from seeing the offer side of the market so they can better plan their logistics and accumulation plans."
Mr Cattle said the efficiency gains on both sides resulted in value creation within the market - reflected by grain regularly trading at higher prices than many may otherwise think were available.
"Growers and their advisors simply determine the price they are willing to sell for and offer their grain for sale at that price, all buyers can then see it, crunch their numbers and try to buy it."
He said all parties remained anonymous, which was important to ensure there was no potential bias impacting the market or price.
"An exchange has to be independent. CGX is not a buyer, seller or advisor of grain," he said.
"If an entity is trying to operate a transaction platform for third parties, whilst also being a potential principle in a transaction, that creates an inherent conflict that can influence the operations of the market, the effectiveness of it, and ultimately the price."
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