Live Daily Grain Prices Australia

Grainwise is proud to provide our clients with up-to-date daily grain prices, as indicated in the graph below. 

Live Daily Grain Price Graph

The daily grain prices graph is a valuable tool used in the grain marketing process, providing knowledge and analytical data to assist grain growers to make sound grain marketing decisions, successfully creating solid grain marketing plans for their crops. 

The daily grain prices graph below, provides an accurate breakdown of Australia’s current grain prices, presenting this information in a simple, clear, and easy to read format, as opposed to our clients having to navigate the complex data graphs listed on other sites.  

With grain marketing and preparing clear and concise grain marketing strategies our forte, if you are looking for some assistance with your grain marketing plans or strategies, give the team at Grainwise a call today, and enlist the help of industry experts.

How Are Grain Prices Determined?

Grain prices in Australia are determined by taking into consideration a number of factors, which creates complexity in the calculation and can make the process of reading or determining grain prices quite complicated and difficult to understand. 

Grain prices in Australia take into consideration three vital components of futures, foreign exchange rates and basis points, all of which have significant impacts upon grain market prices. 

The US futures market is used as an underlying price for the Australian grain industry, with the actual local Australia price wither higher or lower, with the variance between these two figures known as the basis, or basis price, which is calculated in US cents. Whilst sounding complex, futures contracts are simply, legal documents between grain producer and grain byer that sets an amount of grain and the price paid per bushel, with details regarding the delivery of the grain product at a future date. 

The third component, the exchange rate, also has a significant impact on the final grain price, due to the fact that most Australian grains are sold in US dollars. A lower US exchange rate meaning that Australian farmers receive more from their product, and a higher return on their farming investment. 

Whilst this process may seem complex, these three factors determine a grain producers bottom line, turning their grain product into dollars.

How To Read Grain Prices?

Reading grain prices, sounds complicated. Afterall, there are multiple factors to consider, such as exchange rates, discounts, futures, cash prices, which in reality make reading grain prices far more complicated than it actually is. 

Firstly, reading grain prices requires knowledge of what you are looking at, and an understanding of how the grain price is determined. The standard grain price formula is; Cash price = futures + basis +/- premium and discounts. Of course, you will from there need to take into consideration the exchange rate as most grain price indicators are in US cents, so conversion to Australian dollars is then required. 

Whilst there are many ways that you can do this yourself, a great tool that we provide at Grainwise is a live daily grain price graph, which provides accurate and up-to-date information that can be utilised by grain growers to make sound grain marketing choices. 

What Are Grain Futures?

Grain futures also referred to as futures contracts are simply, legal documents between grain producer and grain byer that sets an amount of grain and the price paid per bushel, with details regarding the delivery of the grain product at a future date.

Grain futures are a valuable grain marketing tool and can have exceptional benefits to profitability. The beauty of grain futures is that they enable grain growers to lock in a price for grain, prior to harvest, with the farmer not having to worry about selling grain after harvest and worrying about other issues such as transport and logistics requirements, as they are all included as part of the contract. 

A downside to a futures contract is that the ability of a grain grower to fulfil a forward grain contract can be affected by events outside their control such as adverse weather events which can affect their crops and leading to an inability to fulfil an agreement. It is therefore always advantageous for grain growers who are considering entering grain futures contracts to commit to realistic contracts and not enter into grain futures contracts for their entire crop. 

How To Trade Grain Futures?

Grain futures contracts are the most common form of grain trading in the Australian grain market and are the method that most traders use. As the term suggests, futures contracts do in fact involve the future. Futures contracts are, therefore, not a physical market, with futures trading essentially involving speculation surrounding the price of the commodity when the contract is delivered, in the future.

The trading of futures contracts essentially involves trading of promises, relying on commitments to deliver crops in the future for a set fee. 

Experienced traders are well versed and have an in depth understanding of how to trade grain futures, with the buying and selling of the grain stocks process completed using a number of active exchange platforms across the world through futures exchange accounts. Grain trade Australia in relation to futures contracts can occur via the Sydney Futures Market, with markets also located in the US, namely the Chicago Board of Trade, and in Europe via the London Commodity exchange.

Get In Touch With Grainwise Today For Your Grain Buying & Selling Needs!

Servicing the greater Riverina area, the dedicated and experienced team at Grainwise have considerable experience in the grain industry and offer a comprehensive range of services to assist grain producers with all their grain buying and selling needs. 

Our broad list of services includes, Contract Management, Administration, Grain Logistics as well as providing up-to-date market information to enable our clients to make sound grain marketing decisions for their future. 

If you would like some assistance with your grain marketing, Contact Us today, and once of our experienced grain marketing team will be in touch with you as soon as possible.