Hay Report - 18 September 2015

National Summary

  • The prospects of the coming harvest, combined with falling demand have seen a softening of prices for old seasons hay. The softening prices, while not unusual for the time of year, has been an interesting observation due to the generally tight stocks of hay nationwide.
  • Forward hay buying has been a notable trend this week, occurring across the market in the lead up to the 2015 harvest. People with a known need for hay in 2016 are are talking with growers to secure stocks of hay in anticipation of a tight coming season.
  • This week we have also noted that positive grain prices are resulting in growers considering the options for harvest; hay or grain. This may have a negative impact on the volume of hay baled but it is too soon comment on the likely extent.

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Hay Report - 11 September 2015

National Summary

  • While price movements both up and down were noted in the market this week there is a consistent message that stocks of fodder are tight nationally. Areas where price increases were recorded tended to be due to competition for limited stocks of hay. Areas where price softening was reported were generally due to the poor availability of higher quality hay, pushing buyer towards lower quality and subsequently cheaper hay.
  • With the silage harvest in progress in some regions, it appears that a large proportion of cattle farmers are concerned with the predicted dry conditions for the second half of the year.This is resulting in farmers planning to cut silage earlier than usual or spraying out struggling paddocks to sow down summer crops.
  • There were reports of frost damage to cereal crops across Australia this week. As growers are still making decisions on how best to manage frost affected crops it is too soon to know what impact this will have on the size of the 2015 hay harvest.

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Hay Report - 21 August 2015

National Summary

  • Hay markets around the nationhave experienced minimal changes this week as most areas are waiting to seewhat the new season harvest will bring. Increasing transport costs arecontributing to price variations as buyers have to source hay from furtherafield. Historically, the market expects to see a softening of hay prices atthis time of year as sellers move stock on to the market making way for thecoming harvest. However this is not being observed this year reflecting the lowstocks of hay nationwide.
  • With the 2015 harvest on thehorizon negotiations are underway for forward hay contracts and it is expectedthat interest in these will increase in weeks to come.
  • While it remains too early topredict the size of the 2015 fodder harvest there is general commentary thatfurther spring rains will be required in most areas to see average crop yields.

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Hay Report - 14 August 2015

National Summary

  • This week we noted higher than usual levels of enquiry for forward contracting of hay for the coming season. This is driven by uncertainty of the coming season but is yet to have an impact on current market prices around Australia.
  • Over the past 3 months it has been reported that stocks of cereal hay have been diminishing. This has resulted in localised prices increases around the nation and has seen farmers opting for lower cost fodder options such as straw.
  • With the exception of Tasmania, most hay producing regions are seeing fair conditions in the lead up to harvest.While rainfall has been below average in most regions, the timing of the rainfall has meant that hay crops are generally performing well to date however the conditions in the coming month will have a large impact on the quality and quantity of the 2015 harvest.

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Hay Report - 31 July 2015

National Summary

  • Australian hay markets experienced another week of mostly unchanged prices. While there are a number of contributing factors that are seeing the market remain more or less static two common ones are buyer resistance to current hay prices and farmers utilising home grown pasture.
  • The price increases that have been reported have been linked to regionally tight stocks coupled with steady demand. As the quantity of hay declines, sourcing higher quality product is becoming challenging for buyers. It should be noted that there are limited stocks of high quality hay available but buyers should expect to pay higher prices to access this hay due to its scarcity.
  • While demand for hay has remained steady this week we have seen an increase in the interest for straw.
  • With the spring harvest drawing closer we are continuing to hear reports that growers are looking to clear sheds out for the new season hay. This may provide opportunities for astute buyers but the hay being released is of varying quality.

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Hay Report - 17 July 2015

National Summary

  • Winter conditions along the eastern seaboard have again spurred an increase of inquiries in the hay market. The lift in demand has come equally from the beef and dairy sectors as businesses form cattle rations for live weight management. A contributing factor to this elevated interest has been the slowing of pasture growth and farmers looking compensate in order to maintain pasture feed wedges into spring.
  • Price rises have been localised to regions where stocks are continuing diminish while demand is increasing. With the exception of a couple of regions, stocks of fodder throughout Australia are at low levels and it is expected that there will be little to no carry over hay going into the 2015 harvest.
  • Sourcing higher quality hay is proving challenging and buyers must be willing to meet top end market prices. Again this week buyer resistance to the higher prices was noted in the market.

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Hay Report - 10 July 2015

National Summary

  • Frosts accompanied by cooler conditions have been the catalyst for increased interest in the hay market this week. Across most regions there were increased enquiries for fodder this week however, significant price changes were not observed in the market. The cold conditions are seeing a reduction in pasture growth rates, and without sufficient rainfall, it is expected that an increase in demand for fodder is expected in the coming weeks.
  • There has been a general increase in demand for fodder from hobby farmers and small acreage producers in some regions.This has applied some pressure to the big bale market however it is yet to impact on pricing.
  • Freight costs remain a contributing factor to price increases as domestic hay stocks are further exhausted. With the exception of Bega and Northcoast NSW, hay traders have commented that stores are at levels that would be traditionally witnessed in September.

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Hay Report - 3 July 2015

National Summary

  • The hay market this week is again exhibiting a mixed bag of results. Typically we would expect the low hay stocks in Southern Australia to have more impact on prices. However despite all indicators suggesting a price increase buyers are showing signs of resistance to higher prices, and for now the market is best described as steady.
  • It should be noted that as hay stocks throughout Australia become low, and hay is being moved greater distances transport is becoming a significant part of hay prices.
  • The lower than average rainfall in most regions is continuing to cast a shadow of uncertainty over yields in the coming harvest. As a result some buyers are talking to suppliers to secure hay for the next harvest, a clear demonstration of their concerns of the coming season.

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