CBH eyes Black Sea sales

CBH is dipping its toes into the Black Sea as part of a global approach to grain marketing that saw it open a US office this year.

The WA co-operative has just sold 50,000 tonnes of Russia-origin grain to Iraq for shipment in August.

The sale comes with the CBH logistics division breaking shipping records at its WA ports on the back of last season's record harvest and its marketing arm dominating sales to overseas customers.

CBH marketing and trading general manager Jason Craig said it was important to have a presence in major grain exporting regions North America and the Black Sea as well as Australia. "You really have got a three-pronged attack in terms of origin, the Black Sea, Australia and North America," Mr Craig said.

"What we are seeing now is a far closer relationship in pricing.

"Our ability to understand all three markets helps WA growers understand where the pricing is."

Mr Craig said CBH would proceed with caution in sourcing grain from the Black Sea region and in building up trade from the office in Portland, Oregon.

"It is not a big part of our business but it is important to understand where those values are and to have some opportunity to trade those origins to certain destinations.

"Some of our customers want to be able to go to a company that can supply them all year round and not always with just Australian grain."

Mr Craig said CBH was up against huge multinational traders who sought a competitive advantage by supplying grain from multiple origins.

Australia is on target to export about 12 million tonnes of wheat from October to the end of the month, with 6mt coming from WA growers. Barley exports will reach about 4.25mt (2.25mt from WA) and canola 2.8mt (1.7mt from WA).

CBH marketing and trading has sold the lion's share of the grain exported - about 3.6mt of wheat, 1.7mt of barley and 1.12mt of canola.