National Summary
- Following the price increases noted last week this week we have seen no price changes in the hay market. This week we also saw a reduction in the levels of interest in the market despite fodder stocks nationally being at or below average for this time of the year. Accordingly the combination of tight stocks and limited interest has seen prices remain steady.
- Most regions in the eastern states are experiencing dry conditions. The key exceptions to this are coastal regions. It is too early in the season to comment on how this will impact on the fodder market.
- Based on a good start to the season and continued demand from the export sector WA growers are looking favourably at the season ahead.
Northern Australia
- No price changes reported in the North this week. Irrigators in the Atherton region have started irrigating crops. This is expected to see an increase in hay prices in the coming months.
- Good pasture growth conditions in the North Coast of NSW is seeing demand for hay stay low and prices steady. In the Darling Downs some suppliers are beginning to clear out sheds in anticipation of the new season’s hay, which may come onto the market as early as July.
- There remains a large amount of interest in protein hay from feedlots. However after three dry seasons and over 75% of Queensland declared in drought, buyers and sellers are demonstrating caution with forward buying options.
Southern Australia
- Interest across Southern Australia was minimal this week resulting in prices staying steady.
- Last week’s price increase resulted in a number of sellers, mainly from grain producing regions, releasing more hay onto the market. This assisted in keeping prices steady.
- There were concerns expressed by growers this week as to what hay and fodder stores will look like in the coming harvest if rains do not arrive soon. It seems that producers that took the gamble of early sowing may reap the rewards as early maturing crops are out of the ground and ready for further falls.
Western Australia
- Hay producers remain positive with a fair start to the season and good interest from buyers, both for the current seasons hay and the season ahead. Quality may become an issue as stocks get tighter. No price movement was recorded this week even with steady demand and stores running low.
Regional Commentary
Atherton Tablelands
- As warmers conditions begin to take effect, irrigation is being utilised to carry crops over. This is anticipated to drive up pricing as producers pass on resource costs.
- There appear to be limited movements of hay going on in the region at this time.
- Continuing dry conditions in the west of the region are seeing large quantities of hay moving from the Tablelands in drought affected areas.
- Pasture hay: +/-$0 ($280 to $320/t). Prices remain steady although due to irrigation costs, prices are expected to shift.
Darling Downs
- Suppliers clearing out sheds in preparation for the August harvest has seen more hay released onto the market.
- While overall stocks remain low, the hay trade in the Darling downs area has been described as a buyers’ market.
- The sorghum harvest is almost completed.
- Interest in cereal and protein hays remains strong with buyers but this is yet to transfer into a price shift.
- Cereal hay: +/-$0 (350 to $380/t). The price remains steady this week.
- Lucerne hay: +/-$0 ($450 to $500/t). The market for lucerne hay remains firm but steady. Lack of supply is expected to keep prices steady.
- Straw: +/-$0 ($170 to $190/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($270 to $310/t). Prices remain steady this week.
North Coast NSW
- The sorghum harvest is almost completed.
- With rains for the region above that for the same time last year, farmers are optimistic for the season ahead.
- Farmers are reportedly confident of the coming silage harvest.
- Buyers are focusing mainly on protein hay and high quality oaten hay however this is not resulting in price movement.
- Cereal hay: +/-$0 ($230 to $290/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($300 to $370/t). Prices remain steady this week.
- Straw: +/-$0 ($120 to $160/t). Prices are steady but are based on limited trading.
- Pasture hay: +/-$0 N/A. Few reports of trading in sufficient quantities to be able to determine a price.
Central West NSW
- Demand for hay from the Central West is currently coming from Queensland, with cereal being of the greatest interest to buyers.
- Adequate supply and fair pricing has seen protein hays unchanged for this week.
- Generally supplies of fodder in the region remain average for the time of year.
- Cereal hay: +/-$0 ($230 to $270/t). Prices remain steady with no change.
- Lucerne hay: +/-$0 ($330 to $400/t). Prices remain steady this week.
- Straw: +/-$0 N/A. There are no reports of straw being traded this week which is mainly attributed to low stocks and slow demand.
- Pasture hay: +/-$0 N/A. There are no reports of new season pasture hay trading yet.
Bega Valley
- This week we are starting to see an increased interest for hay; however this has not yet transferred through to price changes in the market.
- Once again, lucerne hay remains of the greatest interest to dairy farmers in the Bega Valley region.
- Overall, both pricing and demands remains relatively unchanged.
- Cereal hay: +/-$0 ($270 to $300/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($350 to $390/t). Prices remain steady this week.
- Straw: +/-$0 ($180 to $200/t). Straw prices remain steady but supplies are low.
- Pasture hay: +/-$0 ($240 to $260/t). Prices remain steady this week.
Goulburn/Murray Valley
- Growers are reporting a tough start to the season.
- Market activity has slowed this week, mainly driven by divide between where buyers and sellers are seeing value.
- Protein hays still remain hot property and accordingly prices have been holding steady.
- Growers are noting poor growth rates compared to the same time last year.
- Stocks for all hay types remain at low levels and there is speculation that unless growing conditions improve in the second half for 2015 stocks will become tighter.
- Cereal hay: +/-$0 ($200 to $220/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($300 to $320/t). Prices remain steady this week.
- Straw: +/-$0 ($90 to $110/t). Prices remain steady as trading is limited.
- Pasture hay: +/-$0 ($150 to $180/t). Pricing remains steady this week.
Gippsland
- Pasture growth rates are slowing with the onset of cooler weather.
- Most dairy farmers in the region should have a considerable feed wedge in front of them and will be starting to incorporate roughage into rations.
- Demand for hay in is low due to good hay stocks on farm (both home grown and purchased) and a preference for utilising paddock feed rather than hay.
- Local stores of hay and fodder accessible to Gippsland farmers remain far and few between.
- Cereal hay: +/-$0 ($240 to $280/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($360 to $380/t). Prices remain steady this week.
- Straw: +/$0 ($120 to $150/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($180 to $230/t). Prices remain steady this week.
Southwest Victoria
- Demand has declined this week but prices remain steady.
- The dry start to the season is causing concern for livestock producers and helping to keep prices steady.
- Cereal hay remains in strong demand however sourcing them is proving challenging.
- Buyers looking to access protein hay are encouraged to secure product sooner rather than later. Vetch hay stocks remain reasonable and there were reports this week of some products coming in from as far as the Mallee.
- Cereal hay: +/-$0 ($240 to $260/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($310 to $350/t). Remain steady this week.
- Straw: +/-$0 ($120 to $140/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($180 to $220/t). Prices remain steady this week.
Southeast South Australia
- Following a good start to the season interest from dairy farmers is the driving force behind demand in the hay market.
- Demand for protein hay is still constant, and vetch seems to be more accessible than lucerne.
- Interestingly, the straw market is continuing to hold as buyers seek roughage to carry dry cows through winter.
- Cereal hay: +/-$0 ($230 to $260/t). Interest into cereals remains steady.
- Lucerne hay: +/-$0 ($300 to $340/t). Very few reports of producers letting lucerne go for anything under $300/t.
- Straw: +/-$0 ($110 to $130/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($180 to $220/t). Holding steady with adequate stores.
Central South Australia
- There is a large amount of interest coming from the dairy industry with the onset of colder weather. This is driving demand for cereal hays and even straw.
- Good falls late last week have boosted the confidence of livestock farmers and assisted pasture growth.
- There was general commentary in the market this week that that prices increase may be on the horizon as fodder stores continue to fall below average for this time of year.
- Cereal hay: +/-$0 ($200 to $220/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($280 to $330/t). Prices remain steady this week.
- Straw: +/-$0 ($120 to $130/t). Prices remain steady. Market interest rising though.
- Pasture hay: N/A. No reported trading.
Southwest Western Australia
- The quote last week “there is an enthusiasm for hay in WA” is ringing true again this week. Exporters are continuing to look for oaten hay but with stocks low, product has been difficult to find.
- Demand from domestic processors is holding up the market for lucerne, with no price changes reported this week.
- Pellet mills and chaff processors are also currently active in the market this week.
- Favourable growing conditions and good soil moistures have given producers another reason to smile.
- Cereal hay: +/-$0 ($190 to $210/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($490 to $530/t). Prices remain steady this week.
- Straw: +/-$0 ($90 to $110/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($160 to 200/t). Prices remain steady this week even with strong competition.
Northwest Tasmania
- Tight conditions throughout May have seen paddock feed in short supply.
- Small bales of oaten hay are a sought after commodity, and are holding prices steady.
- With environmental conditions less than desirable contractors are concerned for end of season stocks. They again strongly encourage people with known needs for hay to look at forward buying hay to avoid missing out.
- Large dairy farms are continuing to dictate isolated markets for hay. Strong demand from dairy farmers for round bale silage continues.
- Cereal hay: +/-$0 ($230 to $250/t). Prices remain steady this week with good demand.
- Lucerne hay: +/-$0 ($310 to $330/t). Prices remain steady this week.
- Straw: +/-$0 ($170 to $190/t). Prices remain steady with no report of trade in straw.
- Pasture hay: +/-$0 ($170 to $190/t). Prices remain steady this week.