Grain – Hay Report – 1 November 2013

International & National Summary – Grain:

• This week saw global supply concerns ease with recent rains in Argentina coupled with reports the Black Sea producers have managed to catch up on planting progress. The European commission also increased their wheat production forecast for the current season by 2 mill t to 133.5 mill t. CBOT December futures ended the week down 18.75 USc/bu to close on Monday night at 681.00 USc/bu.
• Damaging frosts experienced by many Australian growers across the Australian East Coast was breaking news in international markets last week. Despite obvious impacts on yield prospects Australian Crop Forecasters (ACF) does not see the level of damage materially affecting the supply and demand picture.
• The Australian dollar remains volatile as the concerns in the US are far from over. The AUD ended the week up 0.75 USc to close on Monday night 95.81 USc well below the weekly high of 97.06 USc. Adding further volatility to the market is the Chinese government who have altered economic policy in an attempt slow the housing boom they are currently experiencing.
• International influences putting downward pressure on prices were largely ignored as Aussie wheat prices were driven higher by local factors. East coast frost concerns and production cuts in the Brisbane port were all defining factors in an overall domestic price rise. Despite these concerns domestic production is still estimated at 24.7 mill t by ACF and there will be no shortage of wheat following harvest. There are existing factors supporting Australian wheat values relative to the rest of the world. Chinese demand is expected to be strong with Australia being well placed to execute into the region. The shipping program is solidly booked in the first four months of the year and wheat stocks on the east coast are historically tight. Basis remains the key indicator for Australian prices and a combination of high basis factors results in strong Australian prices.
• The harvest continues to advance south through Australia progressing into central southern NSW and reports of barley being harvested in northern Victoria. Yields in the northern states are below average on a whole and competition in the feed market is providing market premiums. The export trade seems content not to compete with the prices feed and miller markets are executing at.
• Barley prices remain weak relative to wheat and as the spread continues to open up feed barley has quickly become a cheap commodity in comparison. With the current spread moving between $65 and $70 since September barley is a more affordable option. This week saw barley become a casualty of frost reports in NSW.
• Solid volumes of old season grain traded throughout NSW and Victoria. Opportunities exist to clean up remaining parcels of grain before harvest representing a cheaper buying alternative for end users. As majority of the old season domestic trade seems to be occurring out of on farm storage continue to be vigilant about quality checks.

National Summary – Hay:

• With new season crop now coming onto the market hay prices are generally softening, as is typical for this time of year. New season prices are becoming clear now in some regions, particularly for cereal hay and vetch. However the fodder season is still very patchy in some areas which could impact on fodder supply over the coming months and into 2014.
• Dry conditions in northern Australia continue to fuel a strong demand for fodder. Hay supplies are limited, particularly in Northern NSW and QLD, a situation started by low carryover of last season’s crop and further stressed by active purchasing behind the baler for new season hay supplies. It should be noted that the demand for fodder in drought affected areas of QLD is likely to continue for at least 8 weeks after a significant rainfall event.
• Reports of large quantities of frosted wheat and barley crops has resulted in significant interest in hay production south of Forbes extending south to Northern Victoria. If cut straight away the quality and colour should be good, however there is a lot of pressure on local contractors who are struggling to meet the inflated demand. If left too long quality may be variable.
• In the southern market large quantities of frosted cereal crops are being cut for hay, keeping contractors very busy. As a result we are already seeing the price for cereal hay start to ease.
• Frosted cereal hay coming onto the market will present good opportunities for growers and buyers to re-stock empty haysheds.
• High grade cereal hay is in low supply and sought after by chaff mills particularly in NSW. Premium prices are being offered for top quality cereal hay in these regions.
• New season Lucerne hay is becoming available in limited quantities on the northern market; accordingly this market has softened slightly in Queensland over the past few weeks. However poor baling conditions, low yields and rising water costs mean that protein hays in bulk will continue to be difficult to source and there is likely to be a shortage again in 2014.
• Further reports of issues surrounding Lucerne hay production including rising water costs, low yields, hot winds and high price for Lucerne seed are likely to result in reduced Lucerne hay available in 2013/2014. Declining Lucerne production coupled with lower than expected vetch yields means we will see a tight market for protein hay in 2013/2014.
• With so many crops being cut for hay the amount of straw produced this season is likely to be down.
• In the southern dairy regions, including South East South Australia and Tasmania rains in the past few weeks continues to shorten the window for fodder conservation. It is likely silage production will be down this year and there is likely to be increased haylage and hay production later in the year.
• Fodder analysis results to date are showing high levels of variability in the quality of hay, in particular NDF’s are coming in high and ME lower than expected due to big yielding crops. As usual we recommend buyers get a feed analysis before making any hay purchases.

This report has been commissioned by Dairy Australia to provide an independent and timely assessment of grain and hay markets in each dairying region. It should be remembered that actual prices may vary for quality or other reasons. All prices are quoted are exclusive of GST.

The information in this report is collected and disseminated with due care and attention to its accuracy, but Dairy Australia accepts no liability if, for any reason, the information is inaccurate, incomplete or out of date.

• Mareeba November rainfall: 0mm (Ave: 48mm).
• YTD: 744mm (Ave: 807).
• Wheat: $ +10 ($359 to $369). The Central Queensland wheat harvest has finished. Virtually a rain free period during this month. Great for grain quality, not so good for yields. All the wheat was human consumption quality. In practice if any end-user requires any wheat for a feeding purpose they are going to have to use APH@ quality and hence a likelihood for premium wheat prices.
• Barley: $ +5 ($405 to $415). Huge prices involving a heavy freight component, Out of contention for animal feeding. On price alone.
• Corn prices $ +0 ($418 to $428). This price range includes CQ corn freighted. Local corn in sown and grown for gritting uses, and processed in southern Queensland. If local gritting corn or feed corn can be bought more cheaply that this price range, use it.
• Sorghum: $ +5 ($318 to $328). The clear favourite as it has been this calendar year, when sourced for one of the grain districts of Central Queensland. Even if purchasing local sorghum or corn, this sorghum range gives a guide to the worth of local grain without significant road freight.
• The drought is impacting all through Queensland in many ways. It is simplistic to say the tablelands have irrigation and therefore, no drought worries. But drought is all round them with daily impacts, as beef producers chase feed, and put more stock into confinement feeding and compete for grain and fodder supplies, not against any calculation for profitable outcomes, but just to keep stock alive, and hopefully not too long before the wet gives some relief.
• Talking to Queensland dairy farmer it is not only the drought that is of concern. But their future beyond next year, is far from clear for many producers, and this puts a very big cloud over daily farming activities, family life, and sensible farm improvements. One sensible and modest investment would be to install a grain silo that could take 20 tonne grain load, rather than having a six tonne silo that requires filling with grain or pellets every week. But without any contract or supply security, it is difficult to make such decisions.

• Demand remains strong for hay, with the cattle stations in drought affected Western Queensland the most active buyers.
• Despite some baling continuing the supply of hay is very low. This is the result of the dry conditions in Western Queensland putting extra pressure on the hay market for most of this year.
• Prices remain firm but steady this week.

• Toowoomba November Rainfall: 0mm (Ave: 83mm).
• YTD: 959mm (Ave: 647mm), compared to 565mm last year.
• Wheat: $ +13 ($323 to $333). In practice most of the new wheat coming in, is 12 per cent protein or better. This is going to be very easy to sell to domestic or export flour millers. It leaves livestock feeders with choice of competing with flour millers or using barley (expensive) or sorghum (cheap).
• Feed Barley: $ +5 ($304 to $314). Within normal price discount to wheat now. But wheat prices are elevated, as all the early wheat stripped has been sound and of high grain protein. This may change towards the end of the harvest. But it didn’t in CQ.
• Corn $ +0 ($355 to $365). Corn producers are holding stocks hoping farmers will see value in the commodity priced $38 a tone over wheat.
• Sorghum: $ +2 ($285 to $295). Sorghum is still presenting itself as the cheapest grain to feed to cows. Because it is better utilized by milking cows if heat-treated toe remove some of the covering of starch granules, pellet sales are higher.
• Queensland September milk production was down 8.1 per cent on September 2012 deliveries
• Talking to Queensland dairy farmers, drought is not the only concern. But their future beyond next year is far from clear, for many producers, and this puts a very big cloud over daily farming activities, family life, and sensible farm improvements.
• One sensible and modest investment would be to install a grain silo that could take 20 tonne grain load, rather than having six tonne silo that requires filling with grain or pellets every week. But without any contract or supply security, it is difficult to make such decisions. New season grain harvest well under way with rainless weather helping activities. Some lightweight feed barley in mid October but later deliveries all up to spec. for minimum test weight.
• Wheat all human consumption category so far. And of very high grain protein, but low yields.

• Demand for all fodder types remains strong throughout Queensland. Cattle stations in Western Queensland are the most active buyers.
• Overall the local supply of hay is very low. This is due to dry conditions across the state putting pressure on the fodder market.
• New season cereal hay is now becoming available locally, but yields are down and quality is variable. Reports of frosted cereal hay crops in NSW have brought some relief to the market with prices remaining firm but steady this week. Much of the price variation being observed can be attributed to the cost of freight and the variable quality of hay available.
• There is very limited bulk lucerne hay available locally. Bulk Lucerne is being sourced in limited quantities from Northern and Central West NSW and Victoria. Trading remains active and prices remain firm but steady this week.
• There is a lot of interest in baling cereal straw this season. With no rain, the quality so far is good and the feedlots are active buyers.

• Lismore November rainfall total: 0mm (Ave: 98mm).
• YTD: 1089mm (Ave: 1101mm), compared to 990mm this time last year.
• SFW Wheat: $ +13 ($372 to $382). With the strong rise this week, wheat has now been effectively taken out of stock rations. Feedlots will include barley and most dairy famers home mixing, will stay with sorghum, as will dairy pellet manufacturers.
• Feed Barley: $ +5 ($356 to $366). These prices are for genuine Feed 1 category up to test weight. Some early western Downs barely was light weight so be careful receiving trucks with barley loaded in paddocks from areas west of Goondiwindi.
• Corn $ +0 ($400 to $410). If all the wheat comes in as human consumption quality there would be an increased interest if feed corn for dairy cows. We are not in this position yet. There were some isolated storm rains in eastern Downs grain areas on Tuesday night.
• Sorghum: $ +2 ($326 to $336). This sorghum price range is compiled from Downs sorghum trucked down to the north or mid north coast of NSW, by merchants. Better deals should be possible buying local sorghum, grain millet or feed grade corn.
• September milk production for this region was down 11.9 per cent on September 2012 deliveries.
• One contribution factor may be the closing down of a significant Coff’s Harbour farm. With wheat prices strongly up, sorghum continues to have appeal on price.

• Hay trading remains steady driven by the increasingly dry conditions, with the livestock and dairy industries the most active buyers.
• Supply of all hay types is becoming very low and is mostly limited to high grade, high priced cereal hay or low grade pasture hay.
• New season hay is now becoming available but consistent demand means little hay has gone into storage at this stage.
• With reports of large quantities of frosted cereal hay coming onto the market, prices eased slightly last week with further reductions in price expected in the coming weeks, however freight will add a significant cost to buyers in Northern NSW
• Supply of Lucerne hay is very low but some new season Lucerne is becoming available in limited quantities from Tamworth and Central West NSW, prices are unchanged this week.

• Forbes November rainfall: 0mm (Ave: 50.1mm).
• YTD: 447mm (Ave: 437mm), compared to 528mm this time last year.
• Dry finish is not helping potential yields for incoming crops.
• SFW Wheat: $ -8 ($200 to $210). Prices down as new season grain starts to flow in.
• F1 Barley: $ -12 ($174 to $184). New season Barley is of good quality leading bringing barley prices down.
• Corn $ +0 ($375 to $385). Corn holders are awaiting the results of incoming wheat crop to possible be a more significant supplier of energy grains to dairy farmers
• Sorghum $ +3 ($311 to $321). Sorghum prices continue to be strong in both NSW and QLD.
• Frost damage has had a significant impact on potential yield.
• Too many crops have had dry soils from lack of rainfall.

• Frost has affected cereal crops in the Cowra, Grenfell, Temora region with reports that contractors are busy trying to keep up with the demand for hay. This extra hay will go a long way toward restocking empty hay sheds and meeting the steady demand for hay coming from QLD and Northern NSW.
• High grade cereal hay is difficult to source and is sought after by the chaff mills and horse market.
• Cereal hay prices remain unchanged this week after softening about $20 last week. It is likely the market will ease further as this frosted cereal hay becomes available in the coming weeks.
• Baling new season Lucerne has commenced and demand is strong from the livestock industry in particular. Forward contracts are being filled as a priority with a lot of hay moving up to Queensland and Northern NSW. Supply of high grade lucerne is particularly low. Prices have softened a further $65 this week and Lucerne is now valued around $220-$280, mainly driven by the variable quality of new season hay.
• Increases in water prices may see the later cuts of Lucerne hay become more expensive in the coming months.

• Bega November rainfall total: 0mm (Ave: 62.9mm).
• YTD: 486mm (Ave: 585mm), compared to 788.4mm this time last year.
• A further six millimetres this week following thirteen last week.
• SFW Wheat $ -8 ($225 to $235). Prices are down as new season grain starts to flow in.
• Feed barley $ -12 ($202 to $212) Down $12 as exporter interest is not currently vibrant out of this region. May change as harvest finishes up and exact tonnages are known.
• Triticale $ +0 ($236 to $246). All old crop gone at this point in time and new season grain still over a month away.
• Oats: $ -10 ($218 to $228). Despite the price drop it is still not cheap enough to include ion the dairy feed rotation.
• Solid rains over the next few months could provide round bale ryegrass hay opportunities.
• Southern milk production for September was down 4% on 2012

• Frosted cereal hay being baled in NSW will present a good opportunity for hay buyers in the Bega region in the coming weeks.
• Overall silage production is estimated to be slightly down this year, largely driven by the patchy seasonal conditions and some growers trying to limit expenditure.
• Prices in the Bega region are currently speculative. With limited trading into the region the new season prices are not yet clear. However with new season hay about to come onto the market we expect to see prices soften in the coming weeks.

• Tatura November Rainfall total: 0mm (Avg: 40.5mm)
• YTD: 307mm (Ave: 454mm), compared to 477.9mm this time last year.
• Minimal rain this week in the northern dairy areas.
• Wheat: $ +0 ($260 to $270). Lower wheat estimates for northern NSW suggest more wheat exports out of Victoria.
• F1 Barley: $ -8 ($203 to $213). As Victorian barley prospects continue to improve the margin between wheat and barely widens. Barley the clear choice for energy at the moment.
• Triticale: $ +0 ($258 to $268) Minimal supply and demand.
• Feed Oats: $ -2 ($173 to $183). Some back loading of cheap Victorian oats going into pellets.
• Ideal conditions for haymaking.
• Northern milk production for September was down 0.7 per cent from 2012
• Significant frost damage throughout the region has seen a proportion of crops go into hay.

• Fodder trading remains slow this week as spring feed is now readily available.
• In the past few weeks baling cereal hay has commenced and good yields are being reported but quality is variable.
• Large areas of frost damaged cereal crops are now being cut for hay now in Southern NSW and Northern Victoria. This increased hay production will assist with stocking up cereal hay supplies but may mean straw supplies are down on original estimates.
• Cereal hay prices have eased approximately $20 this week now trading at $160-$180t delivered to the GV, the weakening market is attributed to the news of frosted cereal crops being cut for hay. There are wide variations in hay quality and we are seeing growers prepared to sit on their lower grade cereal hay at this stage.
• Pasture silage production is slightly down on previous years; however there is a lot of interest in summer crops like maize, sorghum and millet intentioned for silage early next year. This is driven by good water allocations.
• Some new season Lucerne is now coming onto the market, very small quantities in bulk are available for trading as forward contracts are taking first preference. Small square Lucerne hay is trading at around $9/bale. Bulk Lucerne remains steady, around $220-$260 delivered, however there is some speculation prices could increase due to higher water prices and low supply.
• There is interest from some buyers in securing vetch behind the baler from the Wimmera and northern Victoria. With limited carry over and lower than forecast yields there is likely to be a shortage of vetch in 2014. Prices remain firm at around $220-$260 delivered to the GV.

• Sale November rainfall: 0mm (Ave: 63.6mm).
• YTD: 496mm (Ave: 543mm), compared to 535mm this time last year.
• Solid spring rains throughout Gippsland have continued.
• SFW Wheat: $ +0 ($294 to $304) Wheat remains steady awaiting the harvest to commence.
• Barley: $ -8 ($244 to $254). $47 With the discounts now $50 a tonne, barley is a clear favourite in Gippsland dairy rations. Grain feeding for cows is reactively low as there is an abundance of natural feed available.
• Triticale: $ +0 ($288 to $298). With new crop not looking like being stripped until mid/late November supply has run out for old season stock and trade is limited if any.
• Feed Oats: $ -2 ($198 to $208). Feed everywhere. No need for oats for grazing animals. Some being bought for chickens in their early stages but little to nothing being bought in the bulk feed market.
• Merchants servicing Gippsland report low grain sales throughout the winter indicating cost cutting due to low milk margins. September milk production was down 1% on 2012 figures.
• Barley a better buy than wheat at current relative prices

• The hay harvest still looks promising if conditions dry out.
• While trading is generally slow there is some interest in securing new season protein hay, particularly vetch which is trading at around $250-$300 delivered. For some buyers restricted cash flow is stopping them from making purchases. All buyers should be aware there is likely to be a shortage of vetch hay in 2014 due to lower than expected yields.
• Pasture silage is trading at about $180-200t DM.

• Port Fairy November rainfall: 0mm (Ave: 48.2mm).
• YTD: 852mm (Ave: 666.5mm), compared to 684mm this time last year.
• Rainfalls have been regular throughout winter and so far spring.
• SFW1 Wheat: $ +0 ($273 to $283). Lower wheat estimates for Northern New South Wales and eastern areas of the central west indicate more wheat exports out of Victoria.
• Feed Barley: $ -8 ($210 to $220). Massive discount to wheat leaves barley in prime position for spring cow feeding.
• Triticale prices $ +0 ($260 to $270). Very little trade as supply is sparce.
• Feed oats $ -5 ($181 to $191). Many graziers are interested in old season oats for purchase as drought protection if they are cheap enough. Supply is still relatively limited and they are not currently being used in feed rotations.
• Still early for haymaking but more paddocks adjoining main roads are being cut and bailed for hay.

• Trading is slow but steady at present. This year there is increased interest from local buyers trying to secure hay now for 2014. These buyers are showing particular interest in new season vetch.
• It is unlikely there will be an oversupply of protein hay this year with shortages of vetch hay likely in 2014 due to lower than expected yields. At present vetch hay is trading for about $220-$260 delivered to South West Victoria.
• Cereal hay has eased slightly this week to around $150-$200/t delivered to South West Victoria. Prices have softened as a result of weather damage impacting the quality of some cereal hay and reports of large amounts of frosted cereal crops being cut for hay in Northern Victoria.
• Silage has commenced but to date the season has been quite patchy. Wet conditions again this week will push the season back further for many growers and this will impact quality. For others early cut silage has been put away with good quality and average yields recorded.
• There is some speculation that this year’s fodder season will be quite short which is the main driver for increased interest in purchasing (particularly protein) hay behind the baler.

• Mount Gambier November rainfall: 0mm (Ave: 46.8mm).
• YTD: 730mm (Ave: 671mm), compared to 609mm this time last year.
• Still very wet with the lower south east receiving between 30-50mm in the past week.
• Wheat $ +1 ($255 to $265) South Australia and Victoria both set to have large harvests. With frost concerns throughout NSW this will see a large majority of the grain coming from southern states.
• Feed barley $ +4 ($231 to $241). Export pricings are bringing back the discount between wheat and barley to traditional levels. Seems barley out of Victoria is more available and potentially cheaper.
• Triticale $ +0 ($230 to $240). It is in extremely short supply and very little to no trade occurring.
• Oat prices $ +0 ($170 to $180) No demand for grain oats with pastures abundant and of high grazing quality.
• Continuing wet conditions are hampering normal spring operations. Silage making has been slow to start.
• Current wheat barley relatives are back to a more traditional range.
• Should be better purchasing opportunities from lower southeast SA than last year.

• It’s been very wet in South East SA which has slowed baling and much of the hay cut in the region over the past month is likely to have weather damage.
• First cut Lucerne has commenced but the wet conditions have slowed production making the season later than usual.
• The market for lucerne seed remains firm and will influence the supply of hay as growers favour this option over hay later in the season.
• At this stage it would appear that the supply of Lucerne hay will remain low and buyers are already making inquiries and locking in their requirements for 2014.
• Silage has commenced but wet conditions over the past few weeks have pushed the season back which will impact the quality and quantity of silage made this year.
• Prices are speculative for new season cereal and pasture hay which remain unchanged this week as there is little trading.
• Old season Lucerne hay is trading for around $300t although there is very little available. New season prices are speculative, depending on quality and availability but should start around $220-260 delivered.

• Murray Bridge November rainfall: 0mm (Ave: 25.3mm).
• YTD: 314mm (Ave: 321mm). 403mm this time last year.
• Wheat $ +1 ($231 to $241). South Australian AGP wheat is trading $50 a tonne cheaper than Victorian delivered wheat of comparable quality. Despite this discount barely is still preferable at this time of year.
• Feed barley $ +5 ($209 to $219). Barley discount to wheat is just outside the traditional range.
• Triticale $ -10 ($230 to $240). Old season supply has been exhausted.
• Feed oats $ -5 ($173 to $183). Less sheep demand currently for oats with paddock feed increasing. Low interest in grain oats as cereal hay is only being bought as a form of drought reserve.
• Barley is the preferred grain for spring cow feeding.
• Some frost damage to crops in the Clare valley.
• Better to wait for any inferior/weather damaged grain which may emerge later in the harvest.

• Baling hay is now about 80% complete, after some weather events, notably the persistent winds have slowed the hay harvest this year. Despite frustrations with the weather growers are reporting good colour and variable but mainly good quality in their cereal hay. Yields are above average.
• There are some reports of frosted cereal crops between Masrable and Clare being baled, if the quality is suitable there could be interest from exporters to take some of this hay.
• Despite a lack of carry-over from 2012/2013 the 2013 cereal hay harvest looks set to replenish empty stores locally.
• Supply of protein (medic and vetch) hays is a little less consistent after weather events at baling caused a lot of trouble for growers, resulting in reduced yields and variable quality.
• There appears to be interest in cutting straw this year which will commence in the coming month. If the quality is good demand will be steady from the domestic and export markets.
• At present prices remain steady.

• Bunbury November rainfall: 0mm (Ave: 26.7mm).
• YTD 798mm (Ave: 712mm), compared to 594mm this time last year.
• No rain this week in the southwest dairy areas but local beef producers say the region is still green with an abundance of moisture from solid rains in the previous month.
• Wheat: $ -5 ($285 to $295). Wheat prices have come down on the back of lower export demand as the new crop begins to come in.
• Feed barley $ +10 ($260 to $270). At a discount to wheat and at current levels it is an appealing buy.
• Triticale $ +0 ($270 to $280). Very little trade occurring as the commodity is becoming increasingly harder to source.
• Oats +0 ($200 to $210). New season grain is almost coming in now with the oats looking favourable.
• Canola, barley and some Lupins have been stripped in areas north of Geraldton.
• Despite a very poor start to the season WA has come home hard with good rains.

• Baling is well underway and average or better yields are being reported. Quality is varied this year, a result of high yields and unfavourable weather conditions.
• Hay trading on the domestic market is slow and fodder prices are still speculative. All fodder types remain unchanged this week.
• For new season cereal hay prices are remaining similar to last year $120-$180/t depending on quality.

• Smithton November rainfall: 0mm (Ave: 56.9mm).
• YTD: 909mm (Ave: 834mm), compared to 810mm this time last year.
• Another sold weeks of rain on the main island this week with 20-30mm received on the north west coast.
• Wheat $-0 ($350 to $360). Wheat has priced itself out of the market in recent weeks at relative prices to barley.
• Feed barley $ -10 ($300 to $310). Huge discount to wheat on the mainland makes it an attractive buy.
• Triticale prices $ +0 ($348 to $358). Needs to be lower against wheat by a lot more than $2 to have any appeal. There are minimal supplies around and is extremely hard to come by at the moment.
• Oats prices $ -5 ($258 to $268). With enough natural feed available the demand for oats is considerably less. Incoming crops are looking really good and there is plenty of natural feed.
• Mainland grain merchants have reported lower grain sales to Tasmania. Production last year was good for feed barely and red wheat and may be an influencing factor. Good feed has also resulted in the ability to naturally feed many of the cows.

• Demand for fodder remains steady and supply is low. Buyers are actively making enquiries now to secure fodder when it becomes available.
• Unfavourably wet weather conditions through winter and early spring have shortened the window for making silage and hay and therefore production will be down.
• Early projections are that supply will be low again in 2014 with demand for fodder from the dairy and beef sectors set to remain steady. Buyers are encouraged to secure their 2014 fodder supplies when baling commences in the coming weeks.
• Conditions over the past week have been favourable for some silage production. Yields are down but quality is good.
• Lucerne hay production will commence in the coming weeks. There is some speculation new season prices will start at around $280-$320t, down approximately $50 over the past month.
• Prices for cereal hay, straw and pasture hay are speculative and remain unchanged.