CLEAR Grain Exchange, the online trading house that pioneered the digital revolution in grain marketing when it launched in 2008, has passed a major milestone, trading its millionth tonne this year.
When it launched, the concept, which allows buyers and sellers to link up, via an online platform, was widely lauded by growers, but there were concerns that low levels of liquidity would stop the trading platform from filling a useful function.
Clear general manager Pat O’Shannassy said that while trading levels were low in the first couple of years, the exchange had moved beyond novelty value and was now a meaningful player in the Australian grains landscape.
And it is not just an Australian first – Clear is the first on-line trading platform for physical agricultural commodities to chalk up a million tonnes of business.
He said one of the major breakthroughs had come when Clear teamed up with GrainCorp to integrate systems between the Clear exchange and GrainCorp’s warehouse system.
Since 2009, growers who warehouse grain at GrainCorp sites have had the ability to view and offer their grain on the Clear Grain Exchange, without having to specifically nominate the grain on the exchange.
In spite of the success, Mr O’Shannassy said the reaction from Australia’s other major bulk handlers, Viterra and CBH had been lukewarm, meaning a similar deal in the western states is not the on the immediate horizon.
Mr O’Shannassy said he was pleased to see Clear become one of the first points of call for farmers looking to get a price for their grain.
“They may not be selling with us all the time, but we are becoming known as one of the best spots to get a feel for what grain prices are doing, and this will help us in the long run.
“Web traffic went up again this harvest and that is very positive for us.”
He said Clear remained committed to further developing its market.
“We’d like to see ourselves get a market share of around 5-10pc of the Australian crop.”
In terms of enticing growers to use the product, Mr O’Shannassy said he believed the prompt, secure payment terms were a massive plus.
“Growers get paid within seven days, and since we launched, there have been more than 10,000 individual transactions, worth $205 million, and there hasn’t been a single default.”
Mr O’Shannassy said he had testimony from both growers and traders, singing the praises of the platform.
NSW farmer Alan Cameron, Ungarie, in the northern Riverina, said he used Clear because it was the fastest way to get paid and he maintained control of his marketing, while Jacky Sung, a grain trader based in Sydney with Marubeni, a large Japanese trade house said he found the concept fantastic to use.
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