Market Check's Grain Tenders are approaching their third harvest and in a changing and maturing market, the Tender process is sure to remain well supported by both buyers and sellers of grain moving forward.
- Sellers and buyers please click here for details of tender process.
- Buyers click here for tender agreement form.
- Sellers click here for tender commitment form.
Background
Back-to-back droughts in Eastern Australia, tight carryover stocks, extreme volatility in prices, and the move towards a deregulated market have led to sellers of grain demanding a new system for price discovery, and buyers of grain to sought accumulating grain from non-traditional sources and areas. The sale of 06 and 07 pool wheat through tender by AWB also made the market accustomed to accumulating grain in this manner.
Benefits of the Tender System
- For consumers and other buyers of grain, the Tender process brings obvious benefits. Most clearly, these involve the ability to buy large parcels of grain direct from growers, rather than many smaller parcels or grain at a margin through the track market.
- Importantly, accumulation of smaller volumes into larger parcels for Tender makes bidding via a Tender a very attractive proposition for non-traditional buyers (e.g. many consumers who normally buy from traders), often from outside the production zone. Consumers please click here for further information <direct back to consumers page>.
- The Tender system enables efficient and transparent price discovery, as grain is exposed to full competition, with frequently in excess of thirty different bidders from a wide range of geographic areas competing for grain.
- The Tendering system creates price outcomes above trader/merchant bids due to consumers being able to accumulate parcels of grain directly from growers rather than through the trade at a margin.
Who are the Buyers?
- Many non-traditional counterparties. For example large international traders with balance sheets 10-20 times larger than “large” Australian traders (such as AWB, ABB and Graincorp) are attracted to the tender as they don’t have large distribution capabilities in Australia.
- Only large credible Traders and Consumers are invited to bid in the tender. Growers have the option of refusing to deal with a particular counterparty.
- Market Check facilitates the transaction and growers contract directly with buyers.
Types of Grain which can be sold by Tender
- Ex-Farm wheat, canola, feed-grains (barley, sorghum, triticale) and pulses (chick-peas, field peas, fabas, lentils etc.
- Warehoused wheat, canola, feed-grains and pulses.
Track Record
- Since early 2007, 283,000 tonnes have been sold through Market Check Tenders.
Please click here for Tender Information (Tender 22.02.12)
Please click here for Supplementary bid sheet (Tender 22.02.12)
Please click here for Tender Agreement Form
.