Grain – Hay Report – 20 June 2014

International & National Summary – Grain:

International Markets

• International markets have continued their spectacular reduction in value. CBOT July14 wheat futures have fallen $55/t since their highs in May to settle at A$230/t in Aussie dollar terms on Tuesday night.
• The USDA report released last week added further pressure to the falling commodities market. The report favoured a bearish direction for the market confirming an increase in global production for key commodities including wheat, corn and soybeans. The largest increase in production was reported for wheat with favourable conditions in the EU, Black Sea and China fuelling the increased estimate.
• Strong export competition is also playing a key role in driving current downward price trends. Australian and US wheat continues to be priced out of the export market by cheaper black sea origin grain. This can be seen first hand with a number of shipments cancelled from Australian ports. Grain allocated to these shipments will have to be diverted to domestic markets. Domestic prices could come under further pressure with this influx of supply.
• Without bullish news to push the market higher it appears international values look set to grind lower in the short term. It is important to remember that if any global concerns emerge over production or quantity, market sentiment can change quickly.

Domestic Markets

• In the north of Australia old and new crop values slid throughout the week chasing international values down. Anecdotally we are hearing that the majority of trades occurring are for deferred delivery with most end users having reasonable cover for now. Strong consumptive demand for feed grains across the east coast will prevent any significant price relief. Until the NW NSW and Southern Queensland dry seasonal outlook changes a price premium will likely remain.
• With minimal old season stock being available a common theme across all port zones and still an extensive wait before new crop hits the market it may be prudent to plan winter-feed requirements early. The price drop over the last month has been a blessing for end users however with limited stocks available securing grain remains difficult. Contracting for later delivery may be an effective measure for locking away required grain.

National Summary – Hay:

• There has been little movement in the hay market this week, with process softening in some regions.
• The unseasonably warm temperatures and good availability of paddock feed in many regions is impacting the demand for hay, which is generally slow.
• In Tasmania where conditions are cooling off demand for fodder has picked up over the past few weeks, with trading of silage being noted.
• Across the country high grade hay is becoming difficult to source. Most high grade hay in storage is already under contract.
• Lucerne hay is in tight supply generally across Australia.
• The Bureau of Meteorology has revised its forecast on an El Niño, with the predictions now suggesting is may occur in spring rather than winter. If the predictions are correct it could result in reduced fodder production from pasture in southern regions, and may impact on summer cropping in northern regions. Based on the most recent prediction cereal hay production is not expected to be greatly impacted.

Northern Australia:

• Demand has slowed in the past few weeks but remains steady. This is not expected to change until temperatures cool down and paddock feed availability becomes shorter in supply.
• Supplies of hay in Queensland and NSW are generally low. Cereal hay can be sourced from SA and Victoria but lucerne hay supplies are short in most regions.
• Some low grade fodder is still being baled. This includes; sorghum stubble, rhodes grass hay and some silage. Feedlots are active buyers.

Southern Australia:

• Trading in southern regions can generally be defined as slow. One of the key factors driving this is the good availability of paddock feed resulting from the good autumn break.
• Prices have remained fairly steady this week but could ease further in the coming weeks if temperatures stay warm.
• Supplies of lucerne hay are low and there is still some interest from northern buyers who are trying to secure their winter fodder supplies.
• The outlook for the 2014 cereal hay harvest is looking positive at this stage.

Western Australia:

• The good start to the season has continued with growers reporting a good start to the season.
• Pasture hay is very difficult to source with the 2013 hay harvest mostly used up by now.
• 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 might 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 June rainfall: 66mm (Ave: 8mm).
• YTD: 542mm (Ave: 726mm), compared to 701mm this time last year.
• A useful 30 millimetres of rain fell across the Atherton Tableland this week. It helped all sown crops in the area, including irrigated farms as rain falls more evenly than applied water.
• Wheat: $ -13 ($392 to $402). Wheat prices for Central Queensland have fallen in line with lower exporter bids for wheat at all Australian wheat accumulation centres. This shows the lack of demand for wheat for domestic purposes against the tonnage produced in CQ. Wheat is still priced above sorghum, as it is all of a human consumption category.
• Barley: $ -2 ($473 to $483). Barley prices in southern Queensland are being held against a falling grain market trend, because of the large number of beef cattle in feedlots. Adding the road freight up from southern Queensland and we get a price $80 above the delivered price of CQ wheat. It has no place in animal feeds currently.
• Corn prices $ -0 ($340 to $350). There are adequate new crop stocks of corn in all the main production regions of this summer crop. This applies to Far North Queensland, southern Queensland and the irrigation areas of New South Wales and even Victoria. Growers and merchants holding corn see more value in holding the stock to await the arrival or not, of the predicted El Nino. Some exports are going out in small parcels, but otherwise holders are sitting on stock with no need to reduce prices in line with sorghum.
• Sorghum: $ -14 ($318 to $328). Sorghum prices have been high recently; firstly following the high export bids. These bids have fallen sharply over the past three weeks to a month. Secondly with most of Queensland still under drought, and without a good start to the winter wheat crops in Qld, sorghum was going to provide the feed for livestock through till new crop sorghum next January. Some rains have improved incoming wheat prospects creating less of a dependence on sorghum.

• Demand for hay has eased following good rainfall across Northern Australia.
• Hay supplies are very low after steady demand throughout the wet season.
• Wet weather and cooler temperatures has slowed both the ongoing hay production and summer crop harvest.
• Ongoing wet weather may impact quality of new season hay produced.
• Rhodes grass: ($280-$300/t) prices remain steady this week.

• Toowoomba June Rainfall: 12mm (Ave: 38mm).
• YTD: 268mm (Ave: 398mm), compared to 829mm last year.
• Over the past two weeks, the Darling Downs grain areas have only had 5 to 10 millimetres of rain.
• Crops are still growing strongly on the back of March rains, but they wont be sufficient for the sown crop to finish on at average yields. The grain trade seems to be taking an over optimistic approach to what are only forecasts and not yet quantitative moisture inputs to the growing winter crop.
• Wheat crops in the Downs will need at least two winter or early spring rains, if crop yields are going to be at all respectable.
• Wheat: $ -12 ($359 to $369). The wheat market has fallen $30 over the past three weeks. There was some doubt about its longevity two weeks ago, but none now. Any price recovery is likely to be slow, perhaps in inverse relation to the progress of the incoming Downs wheat crop. The main driver of the price drop is the size of the northern hemisphere wheat crop and the aggression with which it is being sold.
• Feed Barley: $ -2 ($359 to $369). Wheat prices are sharply lower. Barley prices have held values almost unchanged. This is because of large numbers of cattle on feed in southern QLD and northern NSW that will want barley to finish on before any new winter crop is stripped.
• Corn $ -0 ($397 to $407). There is plenty of corn in silos on the Downs and from irrigated areas of northern NSW. But growers and merchants holding stock are waiting for the best time to sell and clearly it is not now. Similar stock held through central and southern NSW irrigation areas.
• Sorghum: $ -18 ($382 to $392). Sorghum values have come off some $38 a tonne over the past three weeks. Bit surprising really. Export prices have certainly dropped. But rain as forecast for last week and this week to come, or to finish. And last week’s rain materialized as only 5 to 10 mm across the key Downs grain production areas. The market seems to be accepting that the forecast rain has actually arrived.

• Demand for fodder has slowed in the past few months. Bulk paddock feed remains limited and demand is expected to pick up as the temperatures cool off.
• The hay market remains slow but steady this week, driven by low hay supplies and farmers trying to save cash.
• Cereal hay: ($350-$400/t). Cereal hay is can be sourced from South Australia and Victoria where stocks are good. Prices remain steady this week following some easing over the past few weeks.
• Lucerne hay: ($300-$350/t). Lucerne hay supplies are low, with trading limited as a result. Prices remain steady and are unlikely to ease until new season hay becomes available later this year.
• Straw: ($200- $220/t). Stocks are low as most straw was moved earlier in the year. Some sorghum stubble can be sourced now but supplies won’t last long.
• Pasture hay: ($160-$180/t). Small quantities of pasture hay are available. Quality is low.

• Lismore June rainfall total: 17mm (Ave: 115mm).
• YTD: 418mm (Ave: 785mm), compared to 896mm this time last year.
• Only light rains this past week with the mid north coast areas receiving only 1 or 2 millimetres for the week. Most northern rivers dairy farms had similar levels but there were some storms that dropped 20 mm in isolated areas.
• There is plenty of soil moisture still from pastures in this region and all the feed is green.
• SFW Wheat: $ -12 ($378 to $388). The wheat market has fallen $30 over the past three weeks. A big drop with the main driver of the drop being the size of the northern hemisphere wheat crop and the aggression with which it is being sold.
• Feed Barley: $ -2 ($379 to $389). Barley prices have held values almost unchanged. This is because of feedlots in southern Queensland and northern New South Wales wanting barley to finish on before any new winter crop is stripped.
• Corn $ -0 ($357 to $367). There is plenty of corn in the area but it is being held as growers and merchants wait for the best time to sell.
• Sorghum: $ -18 ($322 to $332). Surprising drop of around $38 a tonne over the past three weeks. The market seems to be accepting that the forecast rain has actually arrived.

• Demand for hay is generally slow. Low cattle prices are seeing buyers hold off from purchasing fodder to manage costs.
• Demand is not likely to pick up until temperatures cool off. Cattle weaning is likely to impact on demand for fodder over the coming months.
• Hay supplies are very low and are expected to come under further pressure as demand picks up later in the year.
• Cereal Hay: -$50 ($300-$350/t). Local supplies are low, with cereal hay being sourced from Victoria and South Australia. Prices remain steady this week.
• Lucerne hay: ($300-$400/t). Lucerne hay is very difficult to source and trading is limited as a result. The quality of lucerne that can be sourced is variable, hence the big variation in pricing.
• Straw: ($200-$250/t). Straw supplies are very low. Buyers seeking fibre to supplement the green pick may need to look for low-grade pasture hay as an alternative to straw.
• Pasture hay: ($200-220/t). Pasture hay is available in small quantities. Quality is low and prices remain steady due to limited trading.

• Forbes June rainfall: 80mm (Ave: 52mm).
• YTD: 394mm (Ave: 229mm), compared to 300mm this time last year.
• Forbes had a great week of rain with 20 millimetres to Wednesday morning. This consolidates the great start to the 2014 winter cropping season for the central west and Riverina areas of NSW.
• Every fresh winter rain that comes through this region gives crops a little more soil moisture to finish on, and hopefully enough to mature crops with good yields before the predicted spring El Nino puts crops and dry land pastures under pressure.
• SFW Wheat: $ -15 ($258 to $268). Wheat prices have dropped over $25 a tonne over the past three weeks. This is driven by the size of the northern hemisphere wheat crop and the aggression with which it is being marketed. The incoming wheat crop looks promising across all states of Australia except QLD.
• F1 Barley: $ -5 ($241 to $251). Barley prices are down but not as savagely as the wheat price. Continuing near-drought conditions in northern NSW and southern QLD, where the nation’s feedlots are concentrated, guarantees a strong demand for feed barley till October.
• Corn $ -5 ($395 to $425). Feed corn prices in most areas have shown resilience to the price falls. But there has been some bulk selling of corn to stockfeed manufacturers in the central west for delivery by June 30.
• Sorghum $ -4 ($338 to $348). Sorghum delivered into this region has seen a substantial price drop. But road freight will make any trade difficult, especially as back loading to the Liverpool Plains is not easy to get. Any local sorghum should be priced close to wheat.

• Demand from most buyers has been slow. After a good autumn break many farmers are relying on paddock feed rather than purchasing fodder.
• There is continued demand for hay from Northern and Western livestock producers still impacted by drought.
• Hay supplies are tight right across NSW.
• Cereal hay: ($280-$300/t). Prices remain steady. Local cereal hay supplies are very low with trading limited as a result.
• Lucerne hay: -$50 ($300-$350/t). Supplies are low and most hay in sheds is under contract. Lucerne hay is difficult to source right across the country.
• Straw: -$20 ($120-$140/t). Demand has eased after the autumn break but may pick up coming into winter.
• Pasture hay: (220-$280/t). There are no reports of pasture hay trading this week due to low supply.

• Bega June rainfall total: 113mm (Ave: 55mm).
• YTD: 368mm (Ave: 367mm), compared to 282mm this time last year.
• The region received 30 millimetres of rain this past week, which continues the early winter growth off the back of the brilliant autumn.
• SFW Wheat $ -15 ($269 to $279). Wheat prices are down $25 a tonne in just three weeks driven by the northern hemisphere wheat crops and the aggression in which it is being marketed.
• Feed barley $ -5 ($250 to $260). Barley prices haven’t come down as sharply as wheat; this is due to apparent unfilled barley demand for feedlots in northern NSW and QLD. The Wagga area is currently the main sourcing region as it has on farm supplies and there is a very active road freight market operating both ways.
• Triticale $ -10 ($259 to $269). As the wheat has tumbled, so too must triticale prices come lower.
• Oats: $ -10 ($260 to $270). Demand for oats is weak except for heavier oats for use by horses. Limited tonnage of Wagga oats are being bought for use in Sydney for day old chicken feeds. Plenty of feed in all southern areas now for sheep and cattle.

• Demand is slowly starting to increase as temperatures cool off and paddock feed becomes limited.
• There is particular interest in low-grade hay and straw for roughage.
• There is some silage being traded.
• Most hay is being sourced from Victoria. Hay supplies in NSW are very tight.
• Good hay is particularly hard to source at present.
• Cereal hay: +$20 ($280-$300/t) Prices have picked up about $20 this week due to increased demand.
• Lucerne Hay: +$50 ($350-$400/t). The market for lucerne hay has also picked up. Prices are firm due to the tight supplies.
• Straw: ($180-$200/t) Demand for straw remains steady and supplies are starting to come under pressure.
• Pasture Hay: ($160-$180/t) Trading is starting to pick up for both hay and silage as farmers own supplies start to run low.

• Tatura June Rainfall total: 58mm (Ave: 44mm)
• YTD: 255mm (Ave: 226mm), compared to 156mm this time last year.
• Growing conditions continue to run well for the start of winter. Top up rains this week have been sufficient to allow for strong growth.
• Sown cereal crops are not yet mature enough to withstand heavy grazing.
• Wheat: $ -13 ($263 to $273). World wheat prices have continued to tumble since our last report. At that time the then price fall was $12 a tonne but thought to be tentative. But a further fall of $13 a tonne shows that grain prices have indeed tumbled and if they do go up subsequently, it will now be very slowly. Price changes have been in position long enough to convince holders the market has changed.
• F1 Barley: $ -7 ($231 to $241). Barley prices are down, but not as much as wheat. Barley was $40 a tonne cheaper than wheat and now its only $32.
• Triticale: $ -0 ($255 to $265). Price was down two weeks ago. Because of that triticale prices are steady this week.
• Feed Oats: $ -5 ($232 to $242). Feed in abundance through northern Vic and also in the northeast, lowering the demand for oats. This includes hill country from Euroa to Wodonga and Tallangatta.

• Demand remains slow with buyers opting to use their own feed before purchasing fodder. Generally on farm fodder supplies are good.
• Conditions are wet and temperatures are cooling off. Demand is expected to pick up in the next month to six weeks as growers seek higher quality fodder to get through winter.
• Good quality hay of any variety is becoming difficult source.
• Cereal hay: ($180-$220/t). Trading is limited at present. There are still some reports of hay moving north but demand has eased considerably over the past few months. Prices remain steady this week.
• Lucerne hay: ($280-$320/t) Trading is slow due to limited supply. Supplies are low and will remain tight throughout winter.
• Straw: ($90-$110/t) Prices remain unchanged this week. There has been some straw trading over the past few weeks, but supplies could come under pressure later in the year.
• Pasture hay: ($150-$200/t) There are some reports of small quantities of pasture hay moving between farms. This is driven by farmers sourcing low cost fodder and growers trying to shift excess supply of low-grade hay.

• Sale June rainfall: 35mm (Ave: 48mm).
• YTD: 192mm (Ave: 285mm), compared to 316mm this time last year.
• The whole region is wet now, particularly after the heavy rains this week in East Gippsland. It will probably remain wet all winter now. This has meant that there are good growing conditions across the region. Some low-lying areas are holding standing water.
• SFW Wheat: $ -13 ($297 to $307). Wheat prices have continued to fall since our last report that has meant holders are now convinced the market has changed. If the prices do rise after this tumble, it will happen very slowly.
• Barley: $ -7 ($273 to $383). The discount to wheat is back to $24 a tonne.
• Triticale: $ -5 ($292 to $302). With wheat prices down $25 a tonne over the past three weeks, triticale prices must come lower.
• Feed Oats: $ -5 ($250 to $260). Throughout Gippsland there is now plenty of feed, even on low-grade semi neglected paddocks. Therefore the demand for feed oats is low. Some demand exists for heavier oats used for horse feeding.

• Demand remains slow due to unseasonably warm temperatures and good availability of paddock feed. Buyers are currently utilising their own feed supplies before purchasing fodder.
• Demand will not pick up until temperatures cool off. If warmer temperatures and intermittent rain continues through winter there may be an unusually low demand for fodder this year.
• Cereal hay: +$10 ($240-$280/t) Supplies are good in Northern and Western Victoria. High grade cereal hay is difficult to source but prices remain steady due to limited trading.
• Lucerne hay: ($300-$320/t) Supply is low throughout Victoria and demand remains steady. Vetch is difficult to source and where it can be found quality is variable.
• Straw: ($100-$120/t). Some straw is available in Gippsland but quality is variable. Gippsland buyers seeking straw are sourcing it from North Central and Western Victoria.
• Pasture hay: ($180-$220/t) Demand is slow due to good supplies on farm locally. There is a small amount of trade between farms.

• Port Fairy June rainfall: 35mm (Ave: 84mm).
• YTD: 302mm (Ave: 308mm), compared to 313mm this time last year.
• SFW1 Wheat: $ -13 ($257 to $267). World wheat prices have continued to fall since our last report, with a further fall of $13 this week. If the prices do intend to go up the climb up will be very slow.
• Feed Barley: $ -7 ($227 to $237). Barley prices are lower again this week but have held up better than wheat over the past three weeks. The barley to wheat discount is expected to settle at around $20 a tonne, most likely before the end of June.
• Triticale $ -5 ($250 to $260). With wheat prices dropping $25 a tonne over the past three weeks it has caused triticale to follow.
• Feed oats $ -10 ($236 to $246). There is a slight demand for heavier oats for horse feeding.
• Many bulk-shipping slots in Vic ports have been cancelled, so grain originally intended for export has been sent back to the domestic market. This may provide further pressure to prices.

• Demand for hay is slow. With generally good on farm fodder stocks and pasture availability most buyers are opting to utilise pastures rather than buying hay.
• This week there is limited trading to report generally for fodder. Prices have eased further accordingly.
• Cereal hay: -$20 ($160-$180/t) Prices eased further this week due to slow demand for hay. There are good stocks of cereal hay still available in North Western Victoria but quality varies.
• Lucerne hay: -$15 ($240-$280/t) Prices remain steady due to low supplies of lucerne hay throughout Southern Australia. In general supplies are much lower than usual for this time of year and will be tight through winter.
• Straw: ($110-$120/t) Prices and demand remain steady this week. Some straw is available locally and quality is variable.
• Pasture hay: -$20 ($160-$180/t) There are still good supplies of pasture hay available locally but high grade pasture and clover hay is difficult to source.

• Mount Gambier June rainfall: 26mm (Ave: 84mm).
• YTD: 285mm (Ave: 297mm), compared to 227mm this time last year.
• Wheat $ -6 ($288 to $298). World wheat prices have continued to fall since our last report causing wheat prices in this region to drop lower again. The prices have dropped by differing amounts depending on the source areas used and these variations are expected to even out over the coming weeks.
• Feed barley $ -5 ($258 to $268). Surplus barley in this region given the bulk container that went Nth to the Downs earlier in the year with the prospect of more.
• Triticale $ -5 ($283 to $293). Following wheat prices triticale has also come down to remain competitive.
• Oats $ -5 ($230 to $240). There is some demand for heavier oats for export, market easing currently.
• Export commitments are no longer working out of SA for pricing reasons; expect to see this grain flow back into the domestic market.

• Trading remains slower than average for this time of year, which is expected to continue until the weather cools off. This is driven by most livestock and dairy farmers having a good wedge of paddock feed ahead of them.
• High quality hay of most varieties is becoming difficult to source.
• Cereal Hay: -$5 ($135 -$145/t). Slow trading has seen a slight drop in price this week.
• Lucerne: ($280-300/t) Prices remain steady as trading is slow. Supplies are limited and may run short in winter.
• Straw: -$5 ($105-$115/t). Straw supplies are low due to steady demand through autumn, but easing demand we have seen a slight drop in price this week.
• Pasture Hay: -$5 ($135-$155/t). With limited trading of pasture hay we saw a small price drop this week.

• Murray Bridge June rainfall: 30mm (Ave: 38mm).
• YTD: 209mm (Ave: 155mm), compared to 172mm this time last year.
• Wheat $ -5 ($253 to $263). Wheat prices continue to drop following estimates that the size of the northern hemisphere crop has increased. Aggressive selling of grain out of the Black Sea ports to the Middle East and Indonesia has also put pressure on the prices. Even allowing for freight advantages Australian wheat is still over-priced.
• Feed barley $ -4 ($238 to $248). Barley prices lower over the past two weeks in line with Victorian and southern NSW values. SA feed barley is unfortunately out of range for road transport to drought areas of NSW and QLD, but has worked earlier this year in bulk vessels.
• Triticale $ -5 ($245 to $255).
• Feed Oats $ +0 ($183 to $193). Export quality oats are helping support the prices.
• A grain company at Murray Bridge went into insolvency in May causing concerns for grain growers mostly in Victoria. Dairy farmers are less likely to be affected.

• Demand remains slow this week. The market for hay is not likely to pick up until conditions get cold and wet, driving demand from livestock and dairy producers.
• Demand from northern buyers has slowed in the past few weeks but may pick up again in the coming weeks.
• The majority of the 2014 crop cereal hay crop is in and hay growers are feeling optimistic about coming harvest.
• Cereal Hay: ($150-$200/t). Prices remained steady this week due to minimal trading.
• Lucerne hay: ($300-$330/t). Supplies are low and lucerne is being sourced from outside the region to meet demand.
• Straw: ($120- $130/t). There has been little movement in price over the past month. Supplies are good and demand is slow at present.
• Pasture hay: No reported trading of pasture hay.

• Bunbury June rainfall: 61mm (Ave: 145mm).
• YTD: 307mm (Ave: 310mm), Compared to 243mm this time last year.
• Wheat $ -10 ($314 to $324). WA wheat prices have now fallen $20 a tonne in the past three weeks. Initially it may have been thought the first fall was a market aberration however time and further falls have proven it is here to stay, at least short term.
• Barley $ -5 ($285 to $395). Barley still has around $30 a tonne discount to the cheapest available WA AGP wheat.
• Triticale $ +5 ($305 to $315). While the discount to wheat is still there, triticale will have some appeal to buyers including stock feed manufacturers.
• Oats $ +0 ($230 to $240). Old crop oats, which were of export quality, are helping keep the price a bit firmer in another falling grain market.

• Hay trading on the domestic market has softened this week. Dairy farmers in the South West remain the most active buyers.
• Sowing is mostly completed for the 2014 cereal hay crop and good rains have hay growers feeling optimistic about the season so far.
• Cereal hay: -$20 ($160-$200/t). Supplies of cereal hay are good this year.
• Lucerne hay: ($500-$550/t). There is limited lucerne hay available and therefore limited trading.
• Straw: -$5 ($85-$115t). Prices remain steady. Production was above average this year and supplies are good.
• Pasture hay: No reported trading of pasture hay.

• Smithton June rainfall: 27mm (Ave: 98mm).
• YTD: 310mm (Ave: 363mm), Compared to 252mm this time last year.
• Wheat $ -3 ($350 to $370). World wheat prices have continued to fall since our last report. The price then had fallen $12 and now a further $13 fall, following mainland prices lower. Price changes have been in position for long enough to convince holders the market has changed. Tasmanian wheat is currently trading slightly cheaper than the imported commodity.
• Feed barley $ +0 ($325 to $335). Most barley traded is still Tasmanian grown, but priced at a slight discount to mainland merchant delivered offers. The barley to wheat discount is now back within its historical range.
• Triticale prices $ +0 ($334 to $344). Slow demand for triticale with local red wheats being very competitive so little business being done with triticale.
• Oats prices $ -5 ($317 to $327).

• Tasmania has had a great start to the season. With good paddock feed available the hay market has been slow coming into winter but is starting to pick up now.
• There is particular interest in silage from the dairy and livestock producers. 2013/2014 was a good year for silage production and supplies are good.
• Quality hay is in short supply in particular lucerne hay is hard to source.
• Cereal hay: ($220-$240/t). There are limited reports of trading. Supplies are low and quality is variable.
• Lucerne hay: +$25 ($300-$350/t). Demand is steady and supplies are low. Sourcing lucerne hay will be difficult throughout winter.
• Straw: ($140-$160). There is some interest in straw from the dairy industry, generally trading remains steady. Dairy farmers and feedlots are the most active buyers seeking roughage.
• Pasture hay: ($180-$200/t). Demand is now starting to pick up and supplies are good. Quality is variable due to the patchy weather conditions during the hay season.