National Summary
- Australian hay markets experienced another week of mostly unchanged prices. While there are a number of contributing factors that are seeing the market remain more or less static two common ones are buyer resistance to current hay prices and farmers utilising home grown pasture.
- The price increases that have been reported have been linked to regionally tight stocks coupled with steady demand. As the quantity of hay declines, sourcing higher quality product is becoming challenging for buyers. It should be noted that there are limited stocks of high quality hay available but buyers should expect to pay higher prices to access this hay due to its scarcity.
- While demand for hay has remained steady this week we have seen an increase in the interest for straw.
- With the spring harvest drawing closer we are continuing to hear reports that growers are looking to clear sheds out for the new season hay. This may provide opportunities for astute buyers but the hay being released is of varying quality.
Northern Australia
- The majority of comments on the fodder market in Northern Australia this week referenced the divide in seasonal conditions being experienced in the region. Reports note that while areas such as South East Queensland and Northern NSW are generally looking ahead to a good harvest, many other areas are still experiencing drought.
- Again there has been limited movement in the hay market in Northern regions this week. This is likely to change in coming weeks as the new seasons crop comes onto the market.
Southern Australia
- Good rainfall over the last two weeks has boosted grower confidence on the coming season and given rise to increase pasture production.
- There seems to be a trend occurring in most dairy regions that businesses are opting to purchase straw and combine it with other additives such as citrus pulp and almond hulls in an attempt to reduce feed costs. While the trade of straw remains consistent, the redirection of interest from cereal hay has not impacted other hay prices due to low stocks throughout southern Australia.
- Overall, stocks of hay remain tight in almost all southern regions. There is also a growing consensus among farmers that very little, if any fodder stocks will be carried into the coming season.
Western Australia
- While there seems to be consistent volumes of fodder transported around the region these movements are forward bought loads by exporters and are not reflective of the low stocks of cereal hay through WA. On the domestic front, demand remains steady but with limited supply and higher quality hay complex to acquire, buyers are less showing little renewed interest.
Regional Commentary
Atherton Tablelands
- Rain is continuing to result is varied quality of new season hay.
- Pasture hay is being bought off the back of the baler as demand is slowly increasing.
- Beef farmers are starting to exhibit resistance current to hay prices. This is driven by high cattle prices for restockers limiting the spending ability of cattle producers.
- Other buyers are willing to pay higher prices for a quality product but servicing this demand remains an issue through challenging weather.
- Pasture hay: +/-$0 ($290 to $330/t). Prices remain steady this week.
Darling Downs
- Current stocks of cereal and lucerne hay remain low but the coming harvest will boost stores and is likely to result in a price adjustment.
- We have had reports that the fodder harvest has started in the Downs with the first cereal hay crops being cut. It should be noted that the main hay harvest in this region is expected to occur throughout August and early September.
- 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
- Continued demand for cereal hay combined with tight stocks saw a lift in cereal hay prices this week.
- Despite cold temperatures slowing pasture growth rates, farmers are focusing on using paddock feed rather than buying hay.
- With cool conditions continuing we expect further pressure on existing hay stocks. Current supplies are typical for this time of year however it is too early to comment on what impact this will have on pricing.
- Cereal hay: +/-$10 ($240 to $300/t). Prices rose this week.
- Lucerne hay: +/-$0 ($300 to $370/t). Prices remain steady this week.
- Straw: -$10 ($110 to $150/t). A drop in prices this week as growers start clearing out sheds in preparation for harvest.
- Pasture hay: +/-$0 N/A. Few reports of trading in sufficient quantities to be able to determine a price.
Central West NSW
- There continues to be strong demand for hay from the Central West from livestock and dairy farmers. Despite this demand there was no price changes reported this week.
- Looking at the harvest ahead there are some positive reports on the progress of crops and growers are reportedly positive on potential hay yields.
- 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). Limited trade and pricing remains steady this week.
- Pasture hay: +/-$0 N/A. There are no reports of new season pasture trading yet.
Bega Valley
- The favourable seasonal conditions in the Bega Valley continue this week. Accordingly the market continues to be fairly quiet for hay trading.
- As cooler temperatures continue we are seeing increased interest in fodder trading, but this is typically focused on locally produced silage, and is yet to impact on prices.
- An increase in demand for hay in the region is still expected if current cool conditions continue.
- 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
- The trade of straw is consistent this week as dairy farmers are using this instead of cereal hay.
- Another increase in irrigation allocations has been welcomed by farmers but it is anticipated that high temporary water prices will be see increased fodder prices for the coming harvest.
- Interest for cereal and protein hay remains steady but there is limited movement of hay being reported in the region.
- While it has been recorded that most stocks have been depleted, good quality cereal hay is available if buyers are willing to pay top end prices.
- Cereal hay: +/-$0 ($210 to $260/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($310 to $360/t). Prices remain steady this week.
- Straw: +/-$0 ($90 to $110/t). Prices remain steady.
- Pasture hay: +/-$0 ($150 to $180/t). Pricing remains steady this week.
Gippsland
- Dairy farmers are focusing feed rations based on silage stocks and with paddock feed rather than brought in fodder.
- There are reports that round bale pasture hay and silage are receiving increased interest.
- Demand remains firm however there is resistance to prices of lucerne and cereal hay.
- The market remains relatively unchanged in both price and demand this week.
- 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
- Farmers are focusing on utilising home grown pasture rather than brought in feed.
- Hay traders have exhausted the majority of stocks however commentary from the market has highlighted that there are some sellers clearing sheds in preparation for the coming harvest.
- Dairy farmers are continuing to buy straw as a low cost fodder option.
- 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
- The trading of lucerne has declined as farmers show resistance to high prices.
- Dairy farmers are continuing to produce and utilise home grown pasture rather than buying fodder.
- With lean stocks of all forms of hay it is predicted that there will be little carried over into the 2015 harvest. These lean volumes of hay have resulted in farmers looking for a cost effective feed options which has pushed up pasture hay prices this week.
- It should be noted that as hay becomes scarce, freight costs are increasingly contributing to prices for fodder on farm.
- 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: +$10 ($180 to $240/t). A price increase was recorded this week.
Central South Australia
- Recent rainfall has done little to relieve growers nervousness about the season ahead. Further rainfall will be required in August to secure good yielding fodder crops for harvest.
- Demand of cereal and some pasture hay in areas south of state are maintaining current prices.
- Interest in the hay market continues to be steady with few inquiries and purchases made.
- 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
- Exporters continue to truck hay to processing facilities which is accounting for a large proportion of all observed hay movements.
- Demand for hay for from domestic buyers is steady
- Sourcing high quality hay is the biggest hurdle for livestock farmers with most stocks exhausted.
- The minimal changes in both supply and demand has resulted in no prices movements.
- 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
- The adverse pasture growing conditions continue to push farmers into the fodder market.
- Inquiries for silage, hay and grain are increasing due to tough seasonal conditions.
- It was reported that there was a larger proportion of sheep farmers entering the market, increasing the competition for high quality fodder.
- Dairy businesses are applying continuous pressure to the demand of fodder as calving cow rations are prepared.
- Even with a higher volume of buyers in the market, there was no price increase recorded after earlier movements this month.
- 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.