Hay Report - 22 July 2016

National Summary

  • This week we heard similar reports around the nation of a generally slow hay market and limited interest in buying. A number of farmers are attributing this to the time of year and a likely return to what is shaping up to be a ‘normal’ spring. Rainfall continues to fall steadily around the country and the combination of good pasture availability and positive looking crops have created an optimistic outlook for farmers.
  • Tight cash flow and in some areas limited supply of hay are adding to the slow market. There are comments that suggest this lull will now continue until prices ease as farmers try a get rid of last season’s stock.

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Hay Report - 15 July 2016

National Summary

  • Despite two weeks since our last report, there were limited changes in hay prices this week. Many farmers put this down to the time of year, with new crops in and seemingly going well around the country. This has been boosted by helpful rainfall in most regions and pasture is now in good supply across the board. The only obvious exception to this is parts of Queensland, which are still in drought.
  • However there was notable increase in trading this week. Reports indicate that the initial rainfall resulted in a pause in buying, but now farmers are again entering the market. This continues to be in small quantities for the most part however, as tight cash flow is a problem for many in the diary industry.

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Hay Report - 1 July 2016

National Summary

  • This week, we saw less buying recorded again in most regions around the nation. The slowing in market activity is in some cases reflective of a more positive outlook for farmers and an easing in demand off the back of a good start to the cropping season and a renewed access to pasture feed after a wet first month of winter.
  • One notable thing this week was a reduction in the number of active buyers in the market. There have been a number of key reasons sighted for this, ranging from tight cash flow to high prices driven by limited supply.
  • There were no major changes to hay prices this week, but reports indicate prices could ease shortly as the market continues to slow down through winter.

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Hay Report - 24 June 2016

National Summary

  • With winter now in full swing and new crops off to a mostly positive start, this week we saw a general slowing in the fodder market around the country.
  • In the Northern regions, particularly towards the coast, less demand is being reported by farmers who are experiencing moderate pasture growth despite the cooler temperatures. There still appears to be good volumes of hay spread throughout these regions but quality remains variable.
  • Heading South, the strong break is yet to let up with rainfall reaching even the driest regions. There are generally positive reports on the crops however there are some areas where flooding has been an issue.

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Hay Report - 17 June 2016

National Summary

  • This week around the nation we saw a general easing in demand for purchased fodder. This has come off the back of substantial rainfall and a promising cropping season looking probable for many regions.
  • Areas which suffered through a long and particularly dry summer combined with below average production have experienced some respite as good grass feed becomes available and takes the immediate pressure off farmers.
  • Looking longer term, milk price cuts also continue to contribute to this downturn in buying. Reports indicate that a number of farmers have been forced to cancel orders of hay, look into cheaper feed alternatives or offload cattle due to tight cash flow. The combination of these factors is expected to result in a slower market for the coming weeks.

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Hay Report - 3 June 2016

National Summary

  • This week we have seen a general slowing of demand however there are yet to be any real price changes being observed yet. Rainfall is being noted as one of the drivers for the reduced demand.
  • Rainfall has fallen in a number of regions in both the North and South of the country, in many cases easing demand by topping up pasture and providing a more positive outlook for farmers generally. In some instances, particularly in the South, the rain has brought an end to unseasonably dry conditions and in others to the North it has extended paddock feed and reduced the immediate need for purchased fodder.
  • The recent milk price cuts ha been a key contributing factor to the slowing in the market and there are continued reports of dairy farmers selling cows or looking at low cost feed options rather than buying hay where some buyers are now having to offload cattle or look to other feed option rather than buy hay at premium prices.

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Hay Report - 27 May 2016

National Summary

  • A transition towards winter conditions was evident around the nation this week, with substantial rainfall and cool conditions reaching numerous Southern regions, while the opposite continued to dry out the North.
  • Currently, most purchased fodder still continues to be traded in the South, but recent milk price cuts have had a noticeable impact on the slowing of trading from recent weeks. This week, comments suggest that the cuts resulted in less new buyers entering the market. Perhaps adding to this, wet weather and an end to dry conditions for much of Victoria and Tasmania have created a more positive outlook for some and also slowed buying.
  • Reports indicate that Northern regions are still a few weeks away from seeing any major changes to the market and to prices, however this week there was a noticeable jump in enquiry from those preparing themselves for the season ahead.

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Hay Report - 13 May 2016

National Summary

  • This week we saw widespread rainfall across Southern regions while the North continued to dry out. This saw the contrast between the two ends of the nation continue again this week.
  • Contrary to the past month’s continuous inflation in demand for fodder and a series of price rises; this week saw a distinct slowing in buying in the South. The main drivers for the slowing of buying were noted as being cuts to milk prices limiting cash flow and, more positively, the arrival of long awaited rainfall.
  • The Northern regions, many of which having experienced good summer rainfall, have now begun to dry off causing a rise in interest for purchased fodder. This has not yet had an impact on pricing but comments suggest price increases could occur with buyers enter the market as winter draws nearer.

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