Grain – Hay Report – 18 April 2014

22 Apr 2014 | Hay Reports

International & National Summary – Grain:

  • Crop conditions across the globe are the firm focus of the market with the current period crucial for global production. Markets found ground this week as US winter crop conditions worsened and US spring wheat plantings got off to a slow start. Thankfully for end users a rising Australian dollar offset gains seen in Chicago. The Aussie dollar increased 1.54USc to close on Tuesday night at 94.21USc. Subsequently in Australian dollar terms CBOT May wheat futures fell A$3/t to finish on A$265/t.
  • US winter wheat was again downgraded and is in desperate need of rainfall to prevent potential yield loss. In addition to the dry weather across the southern plains a cold snap of weather with freezing temperatures is arriving this week. It’s important to note that while the market has reacted to potential production issues there are not any confirmed supply shortages at this stage.
  • The tension in Ukraine has reared its head again this week as violence in eastern Ukraine escalates. The renewed tension is further destabilizing the Ukraine economy, which could affect the local grain markets. Ukraine is a key wheat and corn exporter globally and there are concerns around executing old crop stocks without disruption. Currently there has yet to be any disturbances to export figures, instead it is future perception that is driving the market.
  • Despite market volatility internationally Australian old crop domestic values remain constant. Trade activity for old crop stocks is minimal with growers tied up preparing to plant this year’s crop. Traders to, are selective on parcels they purchase as they look to wind up their book. The lack of liquidity in the market is beneficial to consumers with the lack of export competition a welcome change.
  • In the southern export states of South Australia and Victoria prices have maintained current values. Selling volumes are certainly subdued particularly for feed barely which has had little activity. Reports suggest that significant volumes remain on farm. If growers all come to the table at once post sowing expect prices to ease. Especially if further rains are received throughout the sowing period and grower confidence increases there may be an opportunity to purchase grain at a discount to current values. Despite the volumes estimated to still be stored on farm the balance sheet is going to be extremely tight at the back end of the year.
  • Grain values in Northern Australia continue to hold at elevated levels whilst feed prices in other areas of Australia drop off. The current sorghum harvest looks to be providing some short term feed relief. Initial rains are promising for the winter crop but there will have to be high levels of certainty around production before prices return to traditional levels.

National Summary – Hay:

  • The demand for hay has remained steady or eased slightly across most regions this week, resulting in little movement in hay prices.
  • Sowing of cereal crops has commenced in Queensland and Northern NSW. Parts of South Australia and Victoria are also gearing up for sowing over the next few weeks.
  • Western Australia is currently experiencing dry conditions. The demand for cereal hay could increase further to the domestic market, in the coming weeks if there is no rain.

Northern Australia:

  • Demand for hay remains steady, despite rain a few weeks ago. Hay supplies remain tight with most hay being sourced from Victoria and South Australia.
  • Conditions have now dried out enough for growers to start sowing cereals for winter feed or hay. Oat and barley seed are in short supply causing some issue for some growers.
  • In the Central West region there is a lot of interest in planting cereal crops for hay this year.
  • South East Queensland Hay Contractors are back in their balers with steady demand for baling pasture (buffell grass) hay following the rain. There is also continued interest in baling stubble now that paddocks have dried out.

Southern Australia:

  • Demand remains steady this week, Northern buyers are still busy but demand is starting to ease. Gippsland buyers are continuing to source hay from North Central Victoria and Western Victoria.
  • Local demand for cereal hay has eased but demand for lucerne hay remains steady.
  • Sowing pastures has commenced after recent rains but for some regions, particularly Gippsland and Tasmania, follow up rain is still sought after.
  • Straw supplies are average and demand is slow.

Western Australia:

  • With conditions dry, demand for cereal hay from dairy farmers and livestock producers in the south west remains steady.
  • Cereal hay supplies are good in the key export hay growing regions after a big yielding season in 2013.
  • After a poor yielding pasture hay and silage season supplies of hay in the south west are low.
  • Lucerne hay supplies are very low and will be short throughout winter.
  • Straw supplies are above average and quality is good.

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.

18 April 2014

Grain

Wheat

Barley

Maize

Sorghum

Atherton Tableland

Price Range

$408

$418

$478

$488

$360

$370

$353

$363
 

Change

$2

-$3

$0

$1
           

Darling Downs

Price Range

$377

$387

$364

$374

$417

$427

$330

$340
 

Change

$5

-$3

$0

$6
           

North Coast of NSW

Price Range

$397

$407

$380

$390

$372

$382

$365

$375
 

Change

$5

-$3

$0

$6
           

Central West NSW

Price Range

$275

$285

$257

$267

$415

$425

$364

$374
 

Change

$3

$0

$0

$6
           
   

Wheat

Barley

Triticale

Oats

Bega Valley

Price Range

$287

$297

$264

$274

$279

$289

$265

$275
 

Change

$3

$0

$0

$0
           

Goulburn / Murray Valley

Price Range

$279

$289

$248

$258

$260

$270

$230

$240
 

Change

$2

$3

$2

$5
           

Gippsland

Price Range

$313

$323

$290

$300

$302

$312

$248

$258
 

Change

$2

$3

$2

$5
           

South West Victoria

Price Range

$274

$284

$245

$255

$263

$273

$239

$249
 

Change

$2

$3

$2

$5
           

South East South Australia

Price Range

$294

$304

$263

$273

$278

$288

$230

$240
 

Change

$2

$0

$3

$3
           

Central Districts of SA

Price Range

$263

$273

$245

$255

$260

$270

$183

$193
 

Change

$1

$15

$5

$0
           

South West of WA

Price Range

$324

$334

$290

$300

$300

$310

$220

$230
 

Change

$2

$0

$0

$20
           

Tasmania

Price Range

$356

$366

$330

$340

$339

$349

$318

$328
 

Change

$1

$3

$3

$5

18th April 2014

Hay

Cereal

Lucerne

Straw

Pasture

Atherton Tablelands

Price Range

N/A

  

N/A

  

N/A

  

$280

$300
 

Change

      

Steady
                   

Darling Downs

Price Range

$400

$450

$500

$550

$200

$250

–

–
 

Change

Steady

Steady

Steady

N/A
                   

North Coast NSW

Price Range

$400

$450

$450

$500

$200

$250

$250

$300
 

Change

Steady

Steady

Steady

Steady
                   

Central West NSW

Price Range

$300

$350

$350

$450

$140

$160

$220

$280
 

Change

Steady

Steady

+$10

Steady
                   

Bega Valley

Price Range

$300

$350

$350

$400

$150

$180

$160

$180
 

Change

Steady

Steady

Steady

Steady

Goulburn / Murray Valley

Price Range

$200

$240

$300

$350

$90

$110

$150

$200
 

Change

Steady

-$25

Steady

Steady
                   

Gippsland

Price Range

$240

$260

$300

$350

$100

$120

$180

$220
 

Change

Steady

Steady

Steady

Steady
                   

South West Victoria

Price Range

$180

$200

$280

$320

$110

$120

$160

$200
 

Change

Steady

Steady

Steady

Steady
                   

South East South Australia

Price Range

$180

$200

$280

$320

$110

$120

$140

$160
 

Change

Steady

Steady

Steady

Steady
                   

Central Districts SA

Price Range

$150

$200

$225

$275

$120

$130

–

–
 

Change

Steady

Steady

Steady

N/A
                   

South West WA

Price Range

$140

$180

$500

$550

$90

$120

$140

$160
 

Change

Steady

Steady

Steady

Steady
                   

North West Tasmania

Price Range

$220

$240

$280

$320

$135

$145

$150

$200
 

Change

Steady

Steady

Steady

Steady

 

1. Atherton Tableland – Grain Commentary

Back to Grain Table
  • Mareeba April rainfall: 138mm (Ave: 42mm).
  • YTD: 453mm (Ave: 707mm). This time last year the tablelands had received 681mm.
  • Wheat: $ +2 ($408 to $418). Despite cyclone Ita, significant parts of QLD haven’t had a great break to bring up the soil profiles as we lead into the winter planting window.
  • Barley: $ -3 ($478 to $488). The price of barley has softened slightly on the back of softer prices in the feed market on the Downs all round.
  • Corn prices $ +0 ($360 to $370). Corn prices remain high & unchanged.
  • Sorghum: $ +1 ($353 to $363). Rain from the cyclone has, as of yet, missed the main regions of CQ grain growing regions. In some areas there were rains of 5-15mm.
  • After two weeks of only 7mm, the skies opened up on the tablelands and the rains totalled around 215mm over the past week or so.
  • This amount of rain was accompanied by roaring winds and therefore came at a price. The sheer amount of water turned creeks into torrents that picked objects up along its path that caused a lot of damage to crops etc.
  • Many paddocks will need landfill to fill in gullies formed after scouring.

1. Atherton Tableland – Hay Commentary

Back to Hay Table
  • Cyclone Ita bought some decent rain to the region but fortunately didn’t cause too much damage to standing summer crops which are due for harvest in a few months.
  • Demand for hay remains steady but baling has stopped due to the wet conditions.
  • Hay supplies are very low at present. Local supplies will not be replenished until drier weather sets in.
  • Prices remain unchanged this week.

2. Darling Downs – Grain Commentary

Back to Grain Table
  • Toowoomba April Rainfall: 7mm (Ave: 30mm).
  • YTD: 221mm (Ave: 324mm), compared to 752mm last year.
  • Light rains over recent weeks have brought on pasture growth and just as importantly, a flush of green feed everywhere, including road side reserves and the heavily grazed stock routes.
  • It is currently difficult to get back loading of bulk grain trucks for the trip south. Rain through the Darling Downs was 5-15mm tis week.
  • Wheat: $ +5 ($377 to $387). The next season for wheat on the Downs prospect is only fair compared to the pre-sowing conditions in most pats of NSW, VIC and SA. Early indications are that higher protein wheats will be in strong demand come harvest time.
  • Feed Barley: $ -3 ($364 to $374). Wagga (SNSW) feed barley is moving to the Downs in B doubles for use by the feedlot industry.
  • Corn $ +0 ($417 to $427). Feed corn prices are very high for prompt delivery but no change over the last fortnight.
  • Sorghum: $ +6 ($330 to $340). New season late sown sorghum being stripped but is taking time to get off. Because of its lateness it will require some frosts to bring the grain moisture down. Conditions too moist for frosts at present.
  • Soil profile – disappointing really, although surface soils have moistened there is very little moisture at depth in the heavy Downs clays.

2. Darling Downs – Hay Commentary

Back to Hay Table
  • Prices remain steady this week although demand has eased slightly following the rain. There is unlikely be big fluctuations in hay prices until new season hay becomes available late in Winter.
  • Local supplies of hay remain low. Most hay is being sourced from Victoria and South Australia. Freight is a large component of the cost of hay.
  • Planting has commenced for the 2014 winter crop. Many growers are considering oats and barley for forage and fodder.
  • Lucerne hay remains difficult to source. Supply of protein hay will remain tight through winter.
  • The recent rain has benefitted some growers who are now in the position to bale pasture (e.g. Buffell grass) for hay. This new season hay will be quickly picked up by livestock producers and feedlots.
  • Straw is currently very difficult to source. This has led to interest in baling sorghum stubble which has commenced again following the rain.
  • With predictions of an El Nino in 2014 buyers are well advised to produce or secure hay supplies and silage where they can now for later in the year.

3. North Coast NSW – Grain Commentary

Back to Grain Table
  • Lismore April rainfall total: 17mm (Ave: 140.2mm).
  • YTD: 328mm (Ave: 598.3mm), compared to 841mm this time last year.
  • Last week there were 5-20mm through the Nthn Rivers. Mid Nth coast had 20-30mm at the same time.
  • SFW Wheat: $ +5 ($397 to $407). Well below average rainfall for this time of year, however there should well and truly be enough moisture in the ground to get the crops started.
  • Feed Barley: $ -3 ($380 to $390). Wagga (SNSW) feed barley is moving to the Downs in B doubles for use by the feedlot industry, freight subsidies are handy.
  • Corn $ +0 ($372 to $382).
  • Sorghum: $ +6 ($365 to $375). New season late sown sorghum being stripped but is taking time to get off. Because of its lateness it will require some frosts to bring the grain moisture. Conditions too moist for frosts at present.
  • Scouting for any summer grains that have been seeded on the coastal strip could prove beneficial. They mean a freight saving/cheaper price for grain.
  • It would be to the advantage of coastal dairy farmers to encourage some local farmers to seed summer grain crops.
  • If this is not successful, there is always the possibility of dairy farmers themselves renting land and cropping it, using contractors themselves.

3. North Coast NSW – Hay Commentary

Back to Hay Table
  • Demand remains steady as buyers try to secure hay supplies for winter. Reports of a possible El Nino in 2014 are having some impact on buyer decisions to secure hay now.
  • All hay supplies are low, due to decreased yields and steady demand. Buyers continue to source cereal and lucerne hay from Victoria and South Australia to meet demand.
  • Sowing cereal crops for fodder and forage has commenced. Oat and barley seed is becoming difficult to source causing issues for some growers.
  • Lucerne hay is still in demand and supplies locally are very low.
  • Pasture hay production, is underway again after the rain. Quality is variable.
  • Straw supplies are low and there is still interest in baling sorghum and soybean stubble to meet the demand for roughage through winter.

4. Central West NSW – Grain Commentary

Back to Grain Table
  • Forbes April rainfall: 38mm (Ave: 20mm).
  • YTD: 273mm (Ave: 147mm), compared to 163mm this time last year.
  • SFW Wheat: $ +3 ($275 to $285). The wheat market is generally strong all through the eastern states this week. The premium of feed wheat above barley is around $18/t and heading for the normal premium range.
  • F1 Barley: $ +0 ($257 to $267). Most of the barley being bought for trucking north to grain consumption centres, such as the inner Downs and Tamworth.
  • Corn $ +0 ($415 to $425). Steady prices over the last fortnight. Perceived shortage of feed corn has more to do with speciality markets such as horse feeds and corn fed broiler chickens.
  • Sorghum $ +6 ($364 to $374). Late sown sorghum from NNSW almost ready for stripping, the acres however are few and far between. They will require some heavy frosts to get off, the reduction of moisture is crucial. Grain dryers are an alternative but expensive to run.
  • An excellent and decisive set of rains each week since mid March, has presented a very favourable outlook for all winter crops in this region.
  • Canola is being sown as paddock conditions allow, as part of the rotation.
  • Buying of barley for drought areas in NSW and QLD has shifted from this region to the Riverina, partly because of road freight considerations.

4. Central West NSW – Hay Commentary

Back to Hay Table
  • Demand remains steady from hobby farmers, chaff mills and feedlots are active buyers, seeking high grade hay such as lucerne.
  • Although good paddock feed is now available some livestock producers are taking action now to secure their winter feed. This trend is being driven by low supplies locally and reports of an El Nino later in the year.
  • Cereal hay is very difficult to source in NSW due to the steady demand earlier in the year.
  • Demand for lucerne has eased slightly and growers have been able to get better yields from their latest cuts of hay. Prices eased slightly this week down $25 to range from $350-$450 depending on quality.
  • Lucerne hay supplies are low. Some growers are still cutting hay, aiming to secure their supply for later in the year. Stronger lamb prices and a good supply of livestock from drought affected regions has proven a better option for some growers. They have opted to move away from hay and opting to graze lucerne in the lead up to winter dormancy instead.
  • Lucerne hay supplies will not be replenished until the 2014/15 hay season gets underway.
  • Pasture hay is difficult to source and quality is variable. Prices are starting at $200/t on farm for low grade hay.
  • Straw is in strong demand. Straw supplies are low and some growers are considering baling summer crop stubble (sorghum, millet etc.) following harvest. Buyers in parts of western NSW still impacted or recovering from drought and feedlots are active buyers.

5. Bega Valley – Grain Commentary

Back to Grain Table
  • Bega April rainfall total: 88mm (Ave: 35mm).
  • YTD: 238mm (Ave: 264mm), compared to 173mm this time last year.
  • Excellent rains the previous two weeks will bring on strong autumn growth for pasture on the hills that were already green.
  • SFW Wheat $ +3 ($287 to $397). Wheat prices are up this week in all central and eastern wheat producing areas. Soils are ready for sowing when growers so choose, from Gunnedah in NSW to Ceduna in SA and all points in between.
  • Feed barley $ +0 ($264 to $274). Barley’s discount to wheat at $23 a tonne is nicely within its traditional spread. It has taken some months to reach this position.
  • Triticale $ +0 ($279 to $289). Minor rise last week. And flat this week. Triticale is at a sensible level compared to its counters barley and wheat.
  • Oats: $ +0 ($265 to $275). After widespread rains through SNSW cropping areas and now the Monaro, there will be little needs for oats till at least mid winter.
  • The key factors are that soils are still warm, soils are wet, productive grass species are already up to cow grazing height and fertilizers have been applied or soon will be on the dairy farms.

5. Bega Valley – Hay Commentary

Back to Hay Table
  • Paddock feed is now available and demand for fodder has eased.
  • Sowing cereal crops for fodder and feed has commenced. Barley seed is difficult to source.
  • Northern buyers continue to compete for hay from Southern NSW and Victoria. Sourcing hay locally, particularly cereal hay and lucerne is difficult due to this increased competition.
  • The market for lucerne hay continues to be hand to mouth and tight supplies are forecast throughout winter.
  • Supply and quality of new season straw is good. Demand remains steady at present from both dairy and livestock.
  • Summer silage (maize, lucerne and sorghum) harvest is continuing with damp conditions slowing production.
  • Prices remain steady but unchanged this week.

6. Goulburn / Murray Valley – Grain Commentary

Back to Grain Table
  • Tatura April Rainfall total: 71mm (Avg: 34mm)
  • YTD: 125mm (Ave: 137mm), compared to 90mm this time last year.
  • A very decisive set of rains over the past eight days. Ranging from 40-50mm in the Mallee and Wimmera.
  • Wheat: $ +2 ($279 to $289). Wheat prices are up this week in all central and eastern wheat producing areas. Soils are ready for sowing when growers so choose, from Gunnedah in NSW to Ceduna in SA and all points in between.
  • F1 Barley: $ +3 ($248 to $258). Discount to wheat of $31/t is not likely to be sustainable for much longer, even though this has been the situation since mid January.
  • Triticale: $ +2 ($260 to $270). The price rise is to keep triticale positioned correctly relative to wheat and barley. Trade still quiet.
  • Feed Oats: $ +5 ($230 to $240). No obvious reason for this price rise. Expect it is merchant holders replacing stocks ahead of winter and not wishing to liquidate as of yet.
  • The timing and amount of rain ensures that this won’t be a false break for this region. The crops, when they emerge, will grow continuously till spring.
  • The first crops being sown are canola and faba beans.

6. Goulburn / Murray Valley – Hay Commentary

Back to Hay Table
  • Buyers in drought affected Northern NSW and QLD are still sourcing cereal hay and lucerne from Northern Victoria but demand is starting to ease from these buyers.
  • Cereal hay supplies are good throughout Northern Victoria.
  • Lucerne hay supplies are fairly low. Some growers are still waiting to finish their last cut before winter. Wet conditions have slowed production.
  • Buyers from Gippsland are still actively sourcing Lucerne from North Central Victoria.
  • There are good supplies of straw locally but a large amount is already under contract, demand is slow and is not likely to pick up until late in winter.

7. Gippsland – Grain Commentary

Back to Grain Table
  • Sale April rainfall: 56mm (Ave: 48mm).
  • YTD: 122mm (Ave: 186mm), compared to 137mm this time last year.
  • As milk litres start to flatten and cows are further into this lactation, issues of whether to feed grain at high levels or let grass produce most of the milk, come into play.
  • Soil moisture is not limited at the moment.
  • SFW Wheat: $ +2 ($313 to $323). Wheat prices are up this week for all of eastern and central Australian grain centres. Relative premium to barley prices reflects the uniform high standard of wheat stripped in Australia last harvest.
  • Barley: $ +3 ($290 to $300). Feed barley is now trading at a $23 a tonne discount to wheat and sitting within the traditional discount range and likely to stay there. Demand will continue in to winter.
  • Triticale: $ +2 ($302 to $312). The price rise for triticale this week is to keep it positioned correctly, relative to its energy and those of wheat and barley. Trade is still very quiet.
  • Feed Oats: $ +5 ($248 to $258). There is no obvious reason for this price rise in Victoria. But the market is the market. Expect that it is the merchant holders of oats who are repricing their stocks ahead of winter and not looking to liquidate yet.

7. Gippsland – Hay Commentary

Back to Hay Table
  • Rain has been good but patchy. Pasture growth has commenced and follow up rain will be needed in the coming weeks.
  • Demand for lucerne hay remains steady this week. Cereal hay demand has eased slightly.
  • Cereal hay supplies are good in Northern and Western Victoria. Quality of 2013 baled hay is variable. Buyers are advised to get a feed analysis done before purchasing hay so they know what they are buying.
  • The supply of lucerne hay is low throughout Victoria and demand remains steady. Vetch is difficult to source, where it can be found quality is variable. Buyers are paying around $250-$300/t on farm for protein hay (vetch and lucerne) depending on quality.
  • Demand for pasture hay is slow.
  • Some straw is available in Gippsland but quality is variable. Gippsland buyers seeking straw are sourcing it from North Central and Western Victoria at this stage.

8. South West Vic – Grain Commentary

Back to Grain Table
  • Port Fairy April rainfall: 37mm (Ave: 51mm).
  • YTD: 120mm (Ave: 155mm), compared to 66mm this time last year.
  • The Western District needed rains of 25 millimetres or more to allow grain crop sowing activities to start. But very few parts of the District got close to this level. Croppers will start sowing in to dry soils.
  • This year there may be a greater role for grazing cereal crops. Red winter wheats may produce more winter bulk than grasses and still produce a harvestable yield of stockfeed grain.
  • SFW1 Wheat: $ +2 ($274 to $284). Wheat prices are up this week for all of eastern and central Australian grain centres. Relative premium to barley prices reflects the uniform high standard of wheat stripped in Australia last harvest.
  • Feed Barley: $ +3 ($245 to $255). Barley is trading outside of the traditional discount to wheat, at a large discount of $29 a tonne below wheat.
  • Triticale $ +2 ($263 to $273). Due to insufficient rains to kick start germination of grass, triticale will be in higher demand through winter as some autumn grass growth will be lost.
  • Feed oats $ +5 ($239 to $249). There is no obvious reason for this price rise in Victoria. But the market is the market. Expect that it is the merchant holders of oats who are repricing their stocks ahead of winter and not looking to liquidate yet.

8. South West Vic – Hay Commentary

Back to Hay Table
  • Demand for hay remains steady. High grade protein hay such as vetch and lucerne are most sought after.
  • There are good stocks of cereal hay still available in North Western Victoria but quality is variable. Always have a feed analysis done prior to purchase so you know what you are buying.
  • Lucerne hay is still available in parts of Northern Victoria and South East South Australia. In general supplies are much lower than usual for this time of year.
  • Vetch has also been in strong demand and is difficult to source unless it was secured earlier in the year.
  • Pasture hay is in good supply but quality is variable. Good quality pasture hay for trading may be difficult to source this year.
  • Some straw is available locally and quality is variable.

9. South East SA – Grain Commentary

Back to Grain Table
  • Mount Gambier April rainfall: 9mm (Ave: 55mm).
  • YTD: 100mm (Ave: 142mm), compared to 60mm this time last year.
  • This dairy area is in a very different situation to other Victorian dairy regions. It has not yet had a definite seasonal break away from the coastal areas. Many inland areas only had 5 millimetres of rain this week which is not enough for seed to germinate on heavy clays. Clays need to absorb moisture and swell before they can make the moisture available to seed or plants.
  • Grain growers are sowing now, starting with canola. There is generally enough winter rain to mature crops. Plus, if they don’t start now there is a risk that once it starts raining it wont stop long enough to get seeding rigs onto the paddocks.
  • Wheat $ +2 ($294 to $304). Wheat prices are up this week for all of eastern and central Australian grain centres. Relative premium to barley prices reflects the uniform high standard of wheat stripped in Australia last harvest.
  • Feed barley $ +0 ($263 to $273). Discount to wheat has widened to over $30 a tonne. However, autumn growth is expected to be slow on unirrigated paddocks and demand for wheat may still be high.
  • Triticale $ +3 ($278 to $288). Triticale pricing is following wheat prices up and may go even closer to wheat prices soon.
  • Oats $ +3 ($230 to $240). Victorian oat prices are up, as the southwest grain areas have not had enough rain for growers to seed into moist soils. The same applies to the upper south east of South Australia.

9. South East SA – Hay Commentary

Back to Hay Table
  • Demand for hay remains quite slow locally. Most livestock producers and dairy farmers have been relying on irrigated pastures for feed rather than buying hay through autumn.
  • Demand for fodder is not expected to pick up until the temperatures cool off in the coming months.
  • Cereal hay is available but quality is variable. Prices remain steady after firming slightly last week. .
  • Demand for lucerne hay is steady at present. Prices have remained stable for the past few weeks.
  • Pasture hay is in good supply but quality is variable.
  • Straw is available and quality is generally good.

10. Central SA – Grain Commentary

Back to Grain Table
  • Murray Bridge April rainfall: 21mm (Ave: 29mm).
  • YTD: 127mm (Ave: 82mm), compared to 39mm this time last year.
  • Last week’s rain came fully up to expectations for most of the Eyre Peninsula and all northern areas, east of Port Augusta.
  • Yorke Peninsula was an exception with only 5 to 10 millimetres. However, it is a reliable cropping area and it is only mid April.
  • Wheat sowings will continue well into June. Spreading the timing of sowings spread the time of flowering and reduces the risk of frost damage.
  • Wheat $ -1 ($263 to $273). Wheat prices are up this week for all of eastern and central Australian grain centres. Relative premium to barley prices reflects the uniform high standard of wheat stripped in Australia last harvest.
  • Feed barley $ +15 ($245 to $255). The difference between bids for wheat and bids for barley, delivered Port Adelaide or Adelaide industrial areas is $16 a tonne, with barley cheaper. Our price range needs to adjust to this, which we have done this week.
  • Triticale $ +5 ($260 to $270). Prices are up this week but getting very close to the price of wheat. Triticale merchants are saying that wheat buyers have under-priced wheat bids at this time, following opening rains for cropping.
  • Feed Oats $ +0 ($183 to $193). With opening rains for most areas of South Australia that are important for this dairy region, oats are not expected to be in demand throughout autumn.

10. Central SA – Hay Commentary

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  • Demand for hay on the domestic market has eased following rain in early autumn.
  • Sowing new season winter crop has commenced in some areas. Rain has been patchy and some growers are holding off waiting for more rain.
  • Cereal hay supplies are good but quality is variable.
  • Supplies of protein hay (medic and vetch) are low and are expected to be difficult to source later in the year. Demand from dairy farmers has started to ease as good paddock feed is now available.
  • Straw quality has been high and supply is good.
  • With trading slow prices remain steady.

11. South West WA – Grain Commentary

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  • Bunbury April rainfall: 1mm (Ave: 35mm).
  • YTD: 12mm (Ave: 69mm), Compared to 55mm this time last year.
  • No rain again this week. Grain growers need rain so they can start sowing with some confidence. Many will start sowing at a certain calendar date, with or without rain, but the seed won’t germinate until the soil is wet to the depth the seed is sown at.
  • Until a good rain comes, growers will remain very apprehensive and not look at selling their old season stocks. But the sowing window is still open for a long time yet. With June being a suitable month to seed wheat in more southern districts.
  • Wheat $ -2 ($320 to $330). Prices jumped last week as merchants who were short for April contract executions drove the market higher. The market is down slightly but growers are not selling until they receive an opening rain for cropping.
  • Barley $ +3 ($290 to $300). Barley prices remain reasonably steady with a slight increase. Trading at a discount of $32 a tonne to wheat.
  • Triticale $ +0 ($300 to $310). Prices remain at higher levels with demand coming from stockfeed mills.
  • Oats $ +10 ($220 to $230). There have been no real opening rains in Western Australian cropping areas. Graziers are looking to oats until the autumn break arrives.

11. South West WA – Hay Commentary

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  • Hay trading on the domestic market remains steady with both pasture and cereal hay in demand.
  • WA has not received good rains yet and conditions are dry. Supplies of pasture hay and silage are low in the South West of the state.
  • There is demand for cereal hay into the livestock and dairy markets. Supplies are good this year and prices should remain steady in the short term.
  • The lucerne hay market is hand to mouth at present and supplies will be tight throughout 2014.
  • Straw production was above average this year and supplies are good.

12. North West Tasmania – Grain Commentary

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  • Smithton April rainfall: 11.4mm (Ave: 59.8mm).
  • YTD: 128.8mm (Ave: 184.7mm), Compared to 114.4mm this time last year.
  • Rain on the northwest dairy areas has been light over both March and April. This has allowed crops to be stripped with minimal difficulties with quality or grain moisture.
  • Mainland merchants report quiet trading in container grain to Tasmania.
  • Wheat $ +1 ($356 to $366). Prices continue to drop as exporter bids take the bulk of the trading through Victorian and South Australia. There has been some buying interest in Tasmanian red wheats and similar varieties from Victoria’s Western District.
  • Feed barley $ +3 ($330 to $340). The feed barley discount to wheat of mainland origin is $26 a tonne. This is just above the traditional discount range. Discount likely to reduce when demand for mainland wheat increases over the winter months.
  • Triticale prices $ +3 ($339 to $349). Triticale is expected to be in strong demand in southeastern Australian areas this winter. The discount of triticale for red winter wheats will be low, if any.
  • Oats prices $ +5 ($318 to $328). Feed oat prices on the mainland have increased by $5 a tonne this week. There is no reason why the local market shouldn’t follow the mainland market up.

12. North West Tasmania – Hay Commentary

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  • The hay market remains steady this week. Parts of the state are quite dry which has benefitted those still harvesting cereal crops and created an opportunity for baling straw.
  • Cereal hay supplies are low and quality is variable.
  • Lucerne supplies are low and sourcing lucerne hay will be difficult throughout winter.
  • The supply of pasture hay is good. Quality is variable due to the patchy weather conditions during the hay season.
  • There is some straw available in the Northern midlands. Dairy farmers and feedlots are the most active buyers.