Grain – Hay Report – 28 March 2014

International & National Summary – Grain:

• There will not be a grain report this week; the next grain update will take place on Friday April 4^th.

National Summary – Hay:

• Welcome rain in Northern Australia this week could provide some relief to farmers when pasture growth takes off over the next 4-6 weeks.
• Despite the rain demand for fodder is not expected ease over the coming weeks. For some buyers this rain will be too late as cooling ground temperatures could restrict pasture growth. Supplementary winter feed will be in demand in the coming weeks and months.
• Rain has stopped fodder production in Northern Territory this week. A good fodder harvest is expected this year, once baling starts up again in the coming weeks. Fodder supplies in the Territory are short at present. A good harvest is needed, particularly for pellet mills and feedlots that are currently sourcing feed from Central South Australia.

Northern Australia:

• Hay supplies remain tight and supplies are being sourced from Victoria and South Australia to meet demand. Feedlots are active buyers at present.
• Due to good rain some growers should be able to plant their cereal crops for forage and/or fodder in the coming weeks.
• Baling sorghum stubble and cereal straw as a cheap roughage source have ceased due to wet paddocks. Buyers will need to source cheap roughage from other regions until paddock feed becomes available.

Southern Australia:

• Trading remains fairly steady this week. Demand is strong for high grade protein hay from dairy farmers and feed mills.
• Protein hay will be short in 2014. Prices have lifted again this week with reports indicating that $280-300t on farm is the average price for lucerne hay not under contract.
• Summer crop harvest is well underway in the irrigated regions of Northern Victoria and Southern NSW. There has been particular interest in cutting maize, millet and sorghum for silage this season.
• There are good supplies of low grade cereal and pasture hay this year.

Western Australia:

• Conditions remain hot and dry which has resulted in slightly increased demand for cereal hay on the domestic market.
• There are good supplies of cereal hay from the 2013 harvest, however quality is variable.
• Western Australia is still experiencing hot dry conditions. Lucerne hay supply is tight in WA and prices are now reported to be over $500/t delivered.
• Straw supplies are well above average and quality is good. Demand for straw is steady, with particular interest from pellet mills due to the active live export market.

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.

• There has been decent rainfall in the past 2 months, easing local demand for hay slightly.
• Despite more widespread rain across QLD demand remains steady from the West of the State. Feedlots are also active buyers.
• Hay supplies are very low at present. Supplies will not be replenished until the drier weather sets in.
• Prices remain unchanged this week.

• Decent rainfalls have been recorded across South East Queensland this week. Despite the rain demand for hay remains steady and will continue to do so until paddock feed becomes available in the next 4-6 weeks.
• Local supplies of hay remain low. Fodder is still being sourced from Victoria and South Australia to meet demand.
• Rain will benefit growers wanting to plant cereal crops for hay in the coming weeks. If conditions throughout winter are favourable, cereal hay will become available locally in July or August.
• Lucerne hay remains difficult to source and prices are firm, above $500/t landed to Southern QLD. Supplies of protein hay are hand to mouth right across the country and no real relief is in sight until the 2014 hay season commences.
• Baling sorghum and other cheaper roughages as cattle feed will now cease as paddocks are too wet for machinery. This could result in an increased demand for cereal hay until paddock feed becomes available.
• Prices remain unchanged this week and are expected to remain steady for the coming weeks.

• Demand remains steady, with livestock producers, dairy farmers and hobby farmers all active buyers.
• Conditions have been particularly dry around the New England, livestock producers from that region have become active buyers, sourcing higher grade hay and silage from the coast where possible. This region has received rain this week but demand is unlikely to ease in the short term.
• All hay supplies are low, due to decreased yields and steady demand. Buyers are now sourcing hay from Victoria and South Australia to meet demand.
• Straw supplies are also low.

• Local demand from livestock producers has eased as more paddock feed is now available.
• Demand has continued to remain strong from hobby farmers, feed mills and Northern buyers, particularly for lucerne hay. Farmers in the New England and Southern Queensland regions remain the most active buyers as they try to secure feed for the coming winter months.
• Cereal hay is very difficult to source locally due to the steady demand earlier in the year.
• Lucerne hay supplies are low and demand remains firm. There is some variation in quality of lucerne hay available at present. Prices remain unchanged this week.
• Straw is in strong demand but this may ease slightly in the coming weeks after good rain across Northern NSW and Southern QLD.

• Demand remains steady.
• The strong demand for cereal hay from Queensland is starting to impact supply in southern NSW. Prices are rising due to the increased competition in the Southern market.
• Supplies of lucerne hay are very low in most parts of eastern Australia, particularly in the dry land production areas. Prices are reflecting the tight supply and may pick up further in the coming weeks.
• Supply and quality of new season straw is good. There is steady demand at present from both dairy and livestock.
• Maize silage production was steady this year with good yields reported.

• Demand for hay from local dairy farmers and feed mills continues to increase.
• Increased demand for hay from drought affected areas in Northern NSW and QLD is causing increased competition for hay in Northern Victoria. Cereal hay is of particular interest to these buyers.
• Cereal hay prices are fluctuating due to the strong competition. Supply is good at present but will become tighter in winter.
• Lucerne hay production is active through North Central Victoria with irrigated crops reporting their 4^th or 5^th cut for the season. Prices continue to increase and are now starting at $300/t on farm.
• Protein hay (lucerne and vetch) is in tight supply with much of the hay in storage already under contract. Buyers from Northern Australia are active at the moment creating strong competition for local buyers.

• There are good supplies of straw locally and demand is slow. Straw will become more sought after in winter this year as cereal hay becomes more difficult to source.

• Demand for hay from non-irrigated regions is picking up. All types of hay are in demand but high quality hay is most sought after.
• Demand for cereal hay has picked up from dairy farmers preparing for autumn calving and building up fodder reserves for winter. Prices remain steady at present but demand from Northern buyers is putting pressure on cereal hay supplies in Northern Victoria. This will impact prices in the coming weeks.
• The supply of lucerne hay is largely hand to mouth at this stage. We expect lucerne hay prices to start to increase in coming weeks as supply tightens further. Vetch is difficult to source, where it can be found quality is variable.
• Demand for pasture hay has also picked up with price rises this week reflecting the increased interest. Pasture hay is now trading for around $200-220/t.
• Some straw is available in Gippsland but quality is variable. Gippsland buyers seeking straw are advised to look to North Central and Western Victoria at this stage.

• Demand remains steady from the dairy industry, with interest in high protein hay such as lucerne still strong.
• There are good stocks of cereal hay still available but quality is variable. Supplies may come under pressure later in the year with ongoing demand from Northern Australia. Price rises in the coming months are expected.
• Lucerne hay is sought after and becoming harder to source. Prices remain steady at this stage but are likely to increase in the coming months.
• Vetch and clover hay are still moving into South West Victoria. Vetch is difficult to source and clover hay is also in limited supply.
• Pasture hay is in good supply but variable quality. Good quality pasture hay for trading may be difficult to source this year.
• There is plenty of straw available and quality is good.

• Demand for hay is slowly picking up, typical for this time of year. Buyers are seeking higher grade hay such as lucerne and there is also some demand for straw.
• Enquiries for good quality pasture/clover hay and cereal hay are now starting to come from the drought affected regions in Northern Australia. Generally the supply of quality pasture hay is low.
• Cereal hay is available but quality is variable. Demand from the north is expected to put pressure on supplies in the southern markets later in the year and prices will increase as a result.
• Demand for lucerne hay is starting to pick up with reports that hay is moving to Queensland from the Keith region. Locally supplies are lower than average. Demand from outside the region will put pressure on the local market later in the year.
• Lucerne hay prices are firm and growers are not willing to negotiate on price due to limited supply. Buyers seeking lucerne or vetch hay should do so as soon as possible. Prices will only increase in the coming weeks and months as supply diminishes.
• After a big yielding season many local growers have filled empty hay sheds with pasture hay for their own use. Quality is variable. It is unlikely there will be high volumes of good quality pasture hay available for trading later in the year.
• Straw is available and quality is generally good.

• Demand for hay on the domestic market is starting to pick up with hay moving up to Northern Territory, Northern NSW and Queensland.
• Cereal hay supplies are good but quality is variable. With the degree of interest from northern buyers seeking cereal hay it is expected prices will rise in the coming weeks.
• The Northern Territory is drawing hay out of Central SA, due to a shortage of hay and local production not due to start until April. Pellet mills and feedlots are the most active buyers.
• Supplies of protein hay (medic and vetch) are low and may be difficult to source later in the year.
• Straw quality has been high and supply is good.
• Prices remain unchanged this week.

• Hay trading on the domestic market is increasing with particular interest in high grade hay. Dry conditions are driving the increased demand.
• Cereal hay supplies are good due to high yields in the 2013 season. Quality is variable.
• There is steady demand for cereal hay into the livestock and dairy markets at this stage due to the dry conditions.
• The lucerne hay market is hand to mouth at present. Quality of 2013 /2014 lucerne hay is variable due to hot dry baling conditions. Prices for lucerne hay have strengthened due to increased demand and low supply. Lucerne hay is trading for over $500/t delivered.
• Straw production was above average this year. There is limited demand for straw from the domestic livestock and dairy market at present but pellet mills are active buyers.

• Conditions are drying off and demand has picked up from the dairy sector.
• There is particular interest in good quality lucerne and oaten hay.
• Cereal hay supplies are low and prices are around $180-$200/t on farm.
• Lucerne supplies are low and demand is steady. Anyone seeking lucerne hay is advised to secure their requirements now for later in the year. Prices are around $260-$280/t on farm.
• The supply of pasture hay is good and some hay is trading. Quality is variable due to the patchy weather conditions during the hay season.