SÃO PAULO, BRAZIL — Grão Direto, a Brazilian ag tech firm, has joined forces with CME Group, a diverse derivatives marketplace, to launch a pricing solution for the physical grain market based on real-time quotes of commodity prices.
It will allow Grão Direto to offer a grain pricing solution using real-time commodity price quotes from CME Group to determine final prices in the Brazilian physical market for commodities such as soy, corn and others.
The new tool, One Click Deal, considers many different factors to conduct customized pricing that automatically considers each farm, rural producer, or warehouse involved in a potential trade. Through this new solution, more than 100,000 tonnes of grain already have been negotiated via One Click Deal during its pilot phase.
“With this new solution, farmers are able to follow physical market prices offered by buyers that use this new service in real time,” said Alexandre Borges, chief executive officer of Grão Direto. “In a matter of minutes, or even seconds, a deal can be closed and formalized through a 100% digital and totally secure experience, from the negotiation phase, integration with the buyers’ hedge, to the digital contract signed between the parties. We are elevating grain trading to the next level by aligning the Brazilian physical grain market with leading derivatives market data, and, with that, new and massive opportunities are emerging.”
All the technological development of One Click Deal took four months and was conducted by the technology and product team of Grão Direto, headquartered in Uberaba, Brazil.
“We are pleased that CME Group’s industry-leading commodity market data will be powering this innovative new tool for Brazilian grain market users,” said Trey Berre, head of data services for CME Group Global. “By accessing our data through CME Smart Stream, our Google Cloud Platform solution, Grão Direto was able to quickly and easily onboard to start developing this new offering for their customers. This collaboration is a great example of how we’re working to empower our global clients to use our data in the ways that work best for them.”
The new service expands the traceability and sustainability efforts in grain commercialization. Digitizing the process makes it easier to integrate physical grain negotiations with different services and systems from social and environmental compliance and supply chain traceability.
Grão Direto was founded in Uberaba, Minas Gerais, Brazil, by entrepreneurs Pedro Paiva, Alexandre Borges e Frederico Marques. The company connects grain growers and grain buyers in a more efficient, safe and modern way.