National Summary
- The hay market this week is again exhibiting a mixed bag of results. Typically we would expect the low hay stocks in Southern Australia to have more impact on prices. However despite all indicators suggesting a price increase buyers are showing signs of resistance to higher prices, and for now the market is best described as steady.
- It should be noted that as hay stocks throughout Australia become low, and hay is being moved greater distances transport is becoming a significant part of hay prices.
- The lower than average rainfall in most regions is continuing to cast a shadow of uncertainty over yields in the coming harvest. As a result some buyers are talking to suppliers to secure hay for the next harvest, a clear demonstration of their concerns of the coming season.
Northern Australia
- The hay market along the North Coast of NSW has again, had little change. Favourable pasture growing conditions for the first half of 2015 for dairy farmers and small acreage producers have seen a smaller volume of buyers in the market place for this time of year.
- There is patchy demand for hay across Queensland, reflective of the variation in seasonal conditions. This is resulting in continued demand for fodder.
Southern Australia
- Transport costs are contributing to pricing increases for hay. Stocks are still low and while interest is mainly coming from the livestock sector, exporters and processors are still having an impact on the market.
- There has been some indication this week that the lower than average stocks are starting to put further pressure onto already solid hay prices in the dairy regions. Lamb and beef farmers have entered the hay market on the back of strong red meat prices.
Western Australia
- As stocks continue to decline throughout WA demand is holding prices for all hay products. Low stocks of cereal hay are pushing domestic buyers towards pasture hay however such interest is yet to take effect on pricing.
- Exporters are still looking for product and with such strong export pricing, forward contracts are currently underway for next season harvest.
Regional Commentary
Atherton Tablelands
- Irrigation remains in use, with these operating costs being passed on to buyers.
- Firm enquiries for pasture hay have been reported this week.
- There have been little change in the Atherton market this week.
- Pasture hay: +/-$0 ($290 to $330/t). Prices remain steady this week.
Darling Downs
- Local hay stocks continue to be drawn down on, however even with the limited hay stocks, prices are holding steady.
- Recent rainfall has seen an increase in pasture growth rates, resulting in farmers utilising pasture rather than buying fodder.
- It is unclear yet how the diminishing supplies of hay will impact prices.
- Cereal hay: +/-$0 (350 to $380/t). The price remains steady this week.
- Lucerne hay: +/-$0 ($450 to $500/t). Prices firm this week.
- 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
- Favourable growing conditions has seen a focus on utilising pasture rather than feeding hay. This has taken pressure off the hay market.
- The dairy industry along the coast remains the largest user of hay.
- There is considerable demand for small square cereal and protein hay coming from the horse industry. This interest is not impacting on overall market prices.
- The horse businesses demand hay is driving up small bale prices of lucerne and oaten hay.
- Interest remains firm for bulk hay but hay no price increases have been reported this week.
- 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
- Recent rainfall has brought relief to winter crops however this has been accompanied by frosts.
- General commentary on fodder stocks in the region are that although sheds full of hay can be seen, the majority of these are already spoken for.
- Good prices for both beef and sheep have lifted farmer confidence, with interest in securing feed stocks off the back of the baler in the coming harvest.
- Stocks of hay in the region remain average but as already contracted hay moves out, a price rise is likely in the coming weeks.
- Cereal hay: +/-$0 ($240 to $280/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($340 to $400/t). The pricing remains steady this week.
- Straw: +/-$0 N/A. There are no reports of straw being traded this week, 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
- Limited changes in the Bega region again this week.
- Good rainfall has seen producers focus on utilising pasture.
- There are more reports that silage is trading with higher interest levels than are being noted for hay.
- Interest in cereal hay has increased but the majority of this is buyers exploring availability and pricing.
- It is expected that prices for fodder will increase as winter conditions take full effect through late July and August.
- 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
- Cereal and protein hay stocks are being exhausted. This has not yet had an impact on prices after last week’s increase.
- Sellers are giving preferential access to remaining stocks to regular customers.
- The announcement of water prices has been flagged as a concern for farmers. There was commentary from the market that water prices will have an impact on fodder prices in the coming season.
- Farmers using feedpads are purchasing straw to use in animal mixed rations. This is maintaining firm prices.
- Cereal hay: +/-$0 ($210 to $240/t). Pricing steady this week
- Lucerne hay: +/-$0 ($310 to $350/t). Prices remain firm this week.
- Straw: +/-$0 ($90 to $110/t). Prices remain steady.
- Pasture hay: +/-$0 ($150 to $180/t). Pricing remains steady this week.
Gippsland
- Interest from livestock producers combined with tight hay stocks have contributed to a pricing increase of cereal and protein hay this week. Sourcing cereal hay continues to be challenging for farmers due to high prices.
- The protein hay trade was firm but low supplies state wide have resulted in a price increase.
- With local hay stocks getting tight and hay coming from further afield transport costs are starting to impact on hay prices.
- Cereal hay: +$10 ($240 to $300/t). Price rise noted this week.
- Lucerne hay: +$10 ($350 to $410/t). Prices have increased due to low stocks and transport.
- 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
- Buyers of protein hay continue to exhibit resistance to high prices.
- As buyers look for a substitute to lucerne, cereal hay purchases are increasing. However this trade has not pushed up pricing.
- There is increase movement of pasture hay in the region but this is yet to result in a price rise.
- Farmers continue to focus on producing pasture on farm rather than buying fodder in.
- It is expected that transport costs will soon be the biggest contributing factor to pricing increases as stocks around the state continue to decrease.
- 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
- After last week’s price rise enquiries in the market remain firm and prices held.
- Buyer’s interest is focused mainly on cereal hay.
- Protein hay is being sourced from Victoria. As stocks of protein hay are declining and buyers are encouraged to secure product before supplies run out.
- Pasture hay is starting to receive increased interest as cereal hay becomes difficult to source.
- Cereal hay: +/-$0 ($240 to $260/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($300 to $350/t). Prices remain steady this week.
- Straw: +/-$0 ($110 to $130/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($180 to $220/t). Holding steady with adequate stocks for this time of year.
Central South Australia
- Drier than average conditions are being experienced in the region forcing farmers to seek to buy in fodder as pasture growth declines.
- Commentary from the market has noted that most shedded hay in the region is already spoken for.
- Stocks of quality cereal hay remain limited.
- Both demand and interest for hay are expected to pick up in the coming weeks. This will likely result in price increases.
- 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.
- Pasture hay: N/A. No reported trading.
Southwest Western Australia
- There is continued demand for cereal hay with exporters, chaff and pellet mills all competing for hay.
- Stocks for cereal hay remain tight.
- As colder conditions set in interest from the livestock farmers is increasing.
- Cereal hay: +/-$0 ($200 to $220/t). Prices remain steady.
- 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.
Northwest Tasmania
- Sourcing pasture hay is becoming harder in the North West and South of Tasmania.
- The majority of interest is coming from dairy farmers, mainly larger producers.
- Interest remains firm for cereal and protein hay resulting in static prices.
- Hay suppliers have highlighted that farmers who forward bought hay have been exempt from fluctuating spot market prices.
- Cereal hay: +/-$0 ($230 to $270/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($310 to $330/t). Prices remain steady this week.
- Straw: +/-$0 ($170 to $190/t). Prices remain steady with little reports of hay trade.
- Pasture hay: +/-$0 ($170 to $210/t). Prices remain steady this week.