National Summary
- Winter conditions along the eastern seaboard have again spurred an increase of inquiries in the hay market. The lift in demand has come equally from the beef and dairy sectors as businesses form cattle rations for live weight management. A contributing factor to this elevated interest has been the slowing of pasture growth and farmers looking compensate in order to maintain pasture feed wedges into spring.
- Price rises have been localised to regions where stocks are continuing diminish while demand is increasing. With the exception of a couple of regions, stocks of fodder throughout Australia are at low levels and it is expected that there will be little to no carry over hay going into the 2015 harvest.
- Sourcing higher quality hay is proving challenging and buyers must be willing to meet top end market prices. Again this week buyer resistance to the higher prices was noted in the market.
Northern Australia
- Demand remains steady this week with little change in the market. Growers are finding weather difficult to contend with as some growers have hay on the ground.
- Other areas around Southern Queensland are preparing for harvest but inland regions are yet to receive sufficient rainfall. Demand from graziers in inland Queensland remains consistent with no change reported this week.
Southern Australia
- Good rainfall in most areas of Southern Australia has come just in time for growers but the amount of rain has varied across the Southern states.
- Demand from livestock producers looking to maintain animals through the cold conditions is driving the market. In NSW there is still hay going into cattle grazing areas where tough conditions remain present and pasture growth is minimal.
- Low stocks continue to be drawn on through Southern Australia and it is likely that there will be limited, if any, carry over stock going into 2015. It is expected that additional stocks may come onto the market later in the year, as noted in both SA and Tasmania, but these stocks are limited.
Western Australia
- Drier than average conditions have left some grain and fodder producers concerned about the season ahead. However, rainfall has been forecast for next week and would be most welcome. Exporters continue to transport hay stocks to processing facilities and this accounts for the majority of hay movement in WA.
Regional Commentary
Atherton Tablelands
- Patchy rain is making it difficult for growers producing hay.
- Steady demand is continuing to diminish hay stocks.
- Irrigation continues in some areas with the added cost of production typically being passed onto buyers.
- Pasture hay: +/-$0 ($290 to $330/t). Prices remain steady this week.
Darling Downs
- Rainfall along the coastal areas continues to disrupt hay growers that are looking to take some crops off.
- Current stocks of cereal and lucerne hay remain low but the coming harvest will boost stores.
- Current stocks in the region are meeting demand and accordingly prices remain unchanged this week.
- 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
- Cold frosty mornings accompanied by rainfall have led to an increase in inquiries for cereal hay this week.
- Despite cold temperatures slowing pasture growth rates, farmers focusing on using paddock feed rather than buying hay.
- After last week’s resurgence of straw trading, interest remains firm.
- Hay supplies are expected to come under further pressure as cooler weather is predicted. With stocks at adequate levels for the time of year it is too early to comment on what impact this will have on pricing.
- 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
- Cold and wet conditions are forcing dairy and beef producers into the hay market for maintenance feed.
- These conditions have led to a significant increase in inquiries but sellers report no changes in pricing at this stage.
- Observations from the market indicated that some buyers are selecting lower quality hay due to perceived high prices. This is accounting for a large proportion of the trade in the area.
- Straw trading remains firm and prices remain unchanged.
- Cereal hay: +/-$0 ($240 to $300/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($340 to $400/t). Pricing remains steady this week.
- Straw: +/-$0 ($150/t). Straw has reopened trade in the region following a period of limited market movement.
- Pasture hay: +/-$0 N/A. There are no reports of new season pasture trading yet.
Bega Valley
- Dairy farmers are continuing to utilise home grown silage, this combined with good stocks hay in the region has seen the trend of low interest in buying in hay continue.
- Cooler temperatures have seen a high proportion of localised silage trading.
- If climatic conditions remain cool it is anticipated that August will result a large increase in interest in hay from buyers looking to maintain feed wedges.
- Cereal hay: +/-$0 ($270 to $300/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($330 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
- Good rainfall has generally restored confidence in the coming season.
- The announcement of temporary water prices coupled with unfavourable seasonal climate outlook has motivated farmers to forward buy hay at current market prices.
- In a turnaround from what was observed in last week’s market buyers are now not exhibiting resistance to hay prices and sourcing what hay stocks remain.
- The increase of hay sales and declining volume of product has seen cereal and protein hay prices rise.
- Cereal hay: +$10 ($210 to $260/t). Prices have increased this week driven by increased demand.
- Lucerne hay: +$5 ($310 to $360/t). Prices have increased this week.
- Straw: +/-$0 ($90 to $110/t). Prices remain steady.
- Pasture hay: +/-$0 ($150 to $180/t). Pricing remains steady this week.
Gippsland
- Patchy rainfall across Gippsland has been a relief to many but frustrating to those who missed out.
- There is a general trend being observed of farmers putting effort into the production of home grown pasture rather than buying hay.
- Buyers are exhibiting resistance to recent hay prices.
- There are talks in some parts of Gippsland of cutting silage early and establishing summer crops in spring as insurance to predicted warmer conditions in the second half of the year. .
- Cereal hay: +/-$0 ($240 to $300/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($350 to $410/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 for hay is slow with limited trading reported this week. Accordingly prices remained steady. Most buyers are opting to utilise pastures and their own fodder supplies rather than buying in hay.
- Some larger livestock businesses are starting to begin talks with hay growers about forward buying hay options.
- Strong beef prices are proving to be an incentive for beef farmers to purchase hay for cattle rations.
- 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
- There is a continued preference for livestock farmers to focus on using home grown feed rather than buying hay.
- Inquiries for cereal and pasture hay are steady again this week.
- A considerable proportion of the demand is coming from the beef sector as operators look to maintain cattle condition.
- Some sellers are reluctant to release final loads of hay unless buyers are willing to pay at the higher end of the quoted price range. While these reports are few in number they are suggestive of further price increases in the coming weeks.
- Many sellers and traders are coming to the end of last season’s stocks and predictions are that there will be little to no carry over hay into next year.
- 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
- Demand from dairy markets remains subdued due to perceived high hay prices.
- The demand from the south of Adelaide is continuing to draw on round bale supplies.
- There has been a general leveling off in the interest in the market this week which has seen prices stay steady.
- The quantity of hay across South Australia is low and it is unlike that there will be any 2014 stock carried into the 2015 harvest.
- 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
- Domestic stockfeed is becoming increasingly difficult to source as all stores of hay in WA are low.
- Most visible stocks of hay in WA have more than likely already been purchased by export hay businesses.
- General commentary on the crop growth is that while they are currently looking OK more rainfall will be required to finish them. It is still too early to speculate yield potential at the time of harvest.
- 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
- Harsh winter conditions and low stocks of cereal and pasture hay in Tasmania have forced larger dairy business into the market to compensate for stunted pasture growth.
- Hay is continuing to be trucked into the north of the state is continuing resulting in added costs to buyers.
- It is expected that more hay will come onto the market in August.
- These combined factors have seen a price rise for pasture hay.
- 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: +$10 ($170 to $230/t). Prices have lifted this week.