StoneX’s Nick Orssich with Will Martin from Moxey Farms, Gooloogong, NSW. Photo: Stefan Meyer

A SUITE of derivatives to enable Australian growers and agribusinesses to buy and sell contracts in Australian dollars per tonne has been launched today by StoneX to incorporate offshore agricultural commodity markets.

Through City Index, StoneX’s retail platform in Australia, the Grains Contracts for Differences (CFD) instruments allow growers and businesses to buy and sell offshore contracts including CBOT, Kansas and Minneapolis wheat ICE canola in $A/t at parcels smaller than the originating exchanges permit.

StoneX is also offering a Grains CFD for ASX wheat, and all Grains CFDs are available in parcels as small as one tonne.

“Individual farmers can now open a trading account in minutes and trade global grains products, priced in Australian dollars, by the tonne, rather than in US dollars and by thousands of bushels,” StoneX vice president – ags APAC Nick Orssich said.

“This approach allows our customers to access live pricing from their smartphone in a form that is familiar to them and place trades instantly to take advantage of market moves,” Mr Orssich said.

StoneX opened its trading desk in Sydney close to 20 years ago to handle trades for growers, traders and buyers of physical cash-market commodities, and this will continue to be its focus in dealing with bulk commercial and institutional orders.

StoneX vice president and head of Australia retail Tom Brown said the new products have placed the power of agricultural markets on to the smartphones of farmers and agribusinesses.

“This is a breakthrough moment for the grains industry in Australia, as it brings real-time prices and lower minimum trade sizes to all market participants,” Mr Brown said.

StoneX Asia Pacific chief executive officer Greg Kallinikos said Grains CFDs addressed customer demand for a reliable and easy-to-access way to trade agricultural products.

“Our international and Australian specialist teams have responded to market demand by creating the first ever offering of this kind, aiming at providing best-in-class market access and execution services to Australian farmers and agribusinesses.”

StoneX is headquartered in London and has offices in the United Kingdom, the United States, Singapore and Poland as well as Australia.

Source: StoneX