A NATIONWIDE indicator of the grain market's strength will soon be launched by Agfarm.

Agfarm national account manager Sam Heagney said the Australian Grain Market Index would give a snapshot of each day's grain price movement.

Mr Heagney produced the AGMI as part of his involvement with the Grain Growers Association Future Grain Leaders Program.

He said the AGMI was born from frustration with other market indicators.

"There are several indicators of the market and none are extremely accurate," Mr Heagney said. "The Chicago Board of Trade futures give a signal of market trading but do not take into account the currency or basis movement."

Mr Heagney said quotes for particular port zones were "too local".

"We could quote the Australian Stock Exchange wheat futures but they only relate to Port Kembla and Newcastle port zones," he said. "It's hard to quote a price without the FOB and location differentials."

Mr Heagney said he wanted the AGMI to be quoted as widely as the stock market indicators. "It's not in dollars per tonne - it's just like the share market index," he said.

"It's a short sharp dose of information."

Mr Heagney said the AGMI would be useful for farmers at work who could hear whether the indicator had gone up or down.

"If it's gone down then they know the market is bad and do not chase information about the physical market," he said.

The AGMI is based on the daily market prices for wheat, barley, canola and sorghum for 12 port zones across all growing regions.

It will be index number weighted according to how much of each Australia produces and their influence on the market.

Mr Heagney expected the index to be rolled out to Agfarm clients for feedback before being launched more widely.

  • Mr Heagney is interested in feedback and can be contacted on 0437 470 841.