THE New Zealand stock exchange, NZX has expanded its footprint in Australia by buying another agricultural commodities analysis service, the South Australian-based Callum Downs Commodity News.
Callum Downs, established in 1991, produces subscription newsletters on grain and wool for producers who use the information as a business tool to assist decision making.
NZX, which has been developing its offshore market information activities as an extension of its trading services in NZ, has also acquired Australian Crop
Forecasters, and the ProFarmer agricultural news and commodity market analysis newsletter in the past two years.
It also recently bought the newly launched CLEAR Grain Exchange, a full-service electronic market for the trading of grain.
Callum Downs founder and principal, Malcolm Bartholomaeus, was instrumental in bringing the use of derivatives to the Australian grain industry with his service covering the US and Canadian grain markets.
"Bringing Callum Downs into our grain sector offering is evidence of NZX's commitment to the Australian grain markets, and our confidence in the prospects of those markets," said NZX chief executive officer, Mark Weldon.
"It is a respected, high quality addition to the NZX grain intelligence unit (GIU)."
He expected the NZX portfolio of grain analysis, commentary and market insight in Australia would continue expanding its product range to growers, traders, policy makers and the general public.
Mr Bartholomaeus said he had been in discussions with NZX for some time, impressed by its plans to build a franchise in the grain market in Australia as a significant business supplementing its relatively modest share trading business earnings in NZ.
NZX was already well established as a comprehensive data and information vendor for the agricultural sector, particularly in the dairy and grain industries and wanted to become a solid information provider outside the Pacific region, notably to Asia.
"It is a logical way forward for the Callum Downs business," said Bartholomaeus.
