AS PART of a push to deepen liquidity in its markets, the online trading platform Clear Grain Exchange (CGX) has ended its exclusive arrangement with GrainCorp sites on the east coast and will work with other bulk handling networks.
CGX general manager Nathan Cattle said the business was working to have as many sites operational for use on the exchange this harvest as possible.
“There’s a lot to do, there are over 30 bulk handlers on the east coast, compared to just eight in SA and WA combined, but we want to get the ball rolling.”
CGX is an online system that provides a space for grain sellers and buyers to interact on a secure platform.
Mr Cattle said the decision came about following consultation with grower customers.
“The message was very strong they wanted access to Clear outside the GrainCorp system – there is a lot of grain stored in networks outside GrainCorp on the east coast.”
“Growers store grain with more than one bulk handler and buyers purchase grain from more than one bulk handling network, so this step made sense for us.”
Mr Cattle said the initial upgrade would only involve bulk handlers, but down the track he flagged the possibility of expanding the Clear platform for use for sales of grain stored on-farm.
“Certainly there is an appetite for that to happen, obviously it will require some work but it is something we will look at.”Mr Cattle said, along with the opportunity to access a wide range of buyers, grower sellers were also attracted by the security of payment when using the Clear system.
“The settlement system is secure, with the grain title and funds transferred simultaneously.”
“With the current spotlight on the issue of grain trader insolvencies this is also an important feature for growers wanting to manage counterparty risk.”
This round of changes to the CGX business follow another initiative implemented at the company earlier this year in response to customer feedback when it switched from free in store pricing to a delivered site price.
