Online grain trading is growing as farmers feel the effects of difficult market conditions.
Graindex, a new online trading platform launched in recent months, has announced a partnership with grain merchant Nidera which means farmers using the platform have access to 60 per cent of the UK’s grain market.
The online platform allows farmers and merchants to trade combinable crops and oilseeds. Graindex commercial director said the platform had allowed farmers to make sales in a difficult market.
Farmers have seen grain prices languish below costs of production for much of the past year. November 15 LIFFE wheat prices were trading at £114/tonne on Friday.
Graindex’s commercial director Andrew Huxham said: “The uptake has gone way beyond our expectations. We think this is because there is no risk and no downside, so vendors are happy to put lots on there to try out the market."
Openfield, Gleadell and Glencore all currently trade through Graindex, and the system has seen £750,000 of listings in its first four weeks. It claimed 45 per cent of these had resulted in sales.
Mr Huxham added the online trading of grain was now inevitable.