National Summary
- This week we noted higher than usual levels of enquiry for forward contracting of hay for the coming season. This is driven by uncertainty of the coming season but is yet to have an impact on current market prices around Australia.
- Over the past 3 months it has been reported that stocks of cereal hay have been diminishing. This has resulted in localised prices increases around the nation and has seen farmers opting for lower cost fodder options such as straw.
- With the exception of Tasmania, most hay producing regions are seeing fair conditions in the lead up to harvest.While rainfall has been below average in most regions, the timing of the rainfall has meant that hay crops are generally performing well to date however the conditions in the coming month will have a large impact on the quality and quantity of the 2015 harvest.
Northern Australia
- The harvest is underway in some areas of the Northern Australia. Some barley hay is already on the ground and it is predicted that oaten crops will follow suite in the coming weeks. The warmer conditions, while favourable for contractors eager to commence harvesting, has caused a decline of pasture growth. This has seen an increased demand for animal feed and further pressure being applied to already tight fodder stocks.
- With the onset of warmer conditions, questionable on farm stock water storage and strong commodity prices for beef, the volume of animals going through sale yards has been steady. Demand for hay is staying strong, and accordingly stocks are getting tight.
Southern Australia
- With the build up to the 2015 harvest, hay sellers and traders have begun preparation work to make way for new season stock. This has resulted in a large variety of hay coming onto the market and purchasers should thoroughly inspect the product prior to procurement. The release of these stocks has not resulted in any price movement due to the overall low quantity of hay along the eastern seaboard.
- Dairy farmers have continued to source straw as low cost roughage and are incorporating this with pasture into rations. This trend is expected to continue.
- Snow in areas of Tasmania has influenced a greater number of buyers into the market. Low hay and fodder stocks are providing a challenge for traders to meet consumer’s demands and we have noted that quantity is the driving buyer’s decisions more than quality.
Western Australia
- The market in WA remains unchanged this week. The news of stronger prices for export hay in the coming season, coupled with recent rainfall, has instilled renewed confidence in WA growers. On the domestic front, demand remains subdued and it is unlikely that this will change in the predicted short term future.
Regional Commentary
Atherton Tablelands
- Warmer weather and consistent demand has exhausted local stocks of dryland pasture hay.
- There has been a higher volume of inquiries from the market as pasture growth rates decline.
- Irrigated pasture hay can be purchased but the small volume of product available and high production costs have seen prices significantly increase this week.
- Pasture hay: +$35 ($300 to $390/t). Prices increased this week.
Darling Downs
- For some growers the harvest is underway in the Darling Downs region. Barley hay has been the first crop to have mower put through it.
- It is expected that the bulk of the harvest will be conducted towards the end of August into early September.
- Demand remains steady but limited inquiries have prevented any price increases.
- 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
- Demand remains minimal for the North Coast region this week. Good growing conditions and adequate soil moistures seen pasture remain the key focus for meeting livestock needs.
- Beef farmers are opting to reduce stock numbers rather than buy in feed.
- No price movement was recorded as a result of current growing conditions.
- Cereal hay: +/-$0 ($240 to $300/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($300 to $370/t). Prices remain steady this week.
- Straw: -/+$0 ($110 to $150/t). Prices remain steady this week.
- Pasture hay: +/-$0 N/A. Few reports of trading in sufficient quantities to be able to determine a price.
Central West NSW
- Growers have started preparing for new season hay and have begun clearing out sheds.
- An increase in inquiries of all types of hay and straw has been recorded in the past week; however this has not resulted in price movement as few of these inquiries are leading to sales.
- The movement of chaffing quality hay has been low recently however there was a noted increase of demand from processors in the past two weeks. This is yet to transfer into a price rise.
- Hay supply remains below average for this time of year but limited sales have seen the market remain steady.
- 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 trading of silage bales continues in the Bega valley.
- There have been reports that some farmers have already started cutting crops for silage and it is anticipated that this will continue through August.
- Limited reports of hay being traded again this week, with farmers looking to use stocks of silage on farm in preference to purchased feed.
- No price movements were recorded this week.
- 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
- Commentary in the market this week noted that buyers are out seeking forward hay contracts with growers.
- High water prices have been a motivating factor for buyers seeking to secure hay early with predictions of higher prices for fodder the 2015 harvest.
- The trade of straw remains steady as dairy farmers continue seek lower cost feed options.
- A price rise is unlikely due to the low number of sales and forward contracts are yet to impact on current market 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
- Livestock farmers continue to focus on home grown pasture production rather than buying hay.
- Due to the low volume of hay stocks in Victoria and along the eastern sea board, higher quality hay is becoming increasingly difficult to source.
- Transportation costs are increasingly impacting on hay delivered prices in the region.
- Demand remains steady in Gippsland 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
- Dairy and beef farmers continue to utilise on farm pasture rather than buying in hay.
- This week we saw greater access to protein hay options with more vetch hay being released onto the market.
- The trade of straw remains consistent as some dairy farmers are focusing on low cost feed options to keep ration costs down.
- Some sellers have begun clearing out sheds in preparation for the coming harvest. This is seeing a variety of hay quality entering the market and buyers are advised to carefully inspect product prior to purchase.
- 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 round bale market is consistent this week as smaller producers seek supplementary feed for livestock.
- Southern Coastal areas have been receiving sufficient rain which has given rise to a greater pasture production. Dairy farmers are taking full advantage of these conditions and reducing hay usage.
- Low stocks of cereal and protein hay has seen some traders and buyers travelling significant distances to obtain hay. These freight costs are underpinning price movements.
- Sourcing higher quality hay remains difficult. However high quality hay is available providing buyers are willing to meet the market.
- While there are pockets of price movement in the region overall prices have not changed.
- 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
- Old season hay is moving as traders begin cleaning out sheds in preparation for the coming harvest.
- A wide range of hay quality is entering the market as sellers start to reach the last of total stocks.
- Some larger hay users are in discussions with hay growers to establish forward contracts for standing crops.
- With local hay stocks remaining low buyers are incurring greater transportation costs resulting in higher on farm prices.
- Cereal hay: +$20 ($200 to $240/t). Prices have increase this week.
- Lucerne hay: +$5 ($280 to $340/t). Prices have increased this week.
- Straw: +/-$0 ($120 to $130/t). Prices remain steady.
- Pasture hay: N/A. No reported trading.
Southwest Western Australia
- Patchy rainfall in WA has further galvanised an optimistic outlook for the coming season. This week saw some areas receive in excess of 40mm.
- Sheep farmers are choosing to use pellets over hay.
- The good season so far combined with talks of strong export hay prices for the 2015 harvest has lifted farmer confidence.
- 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
- Tough growing conditions across Tasmania have seen a large increase in demand from livestock producers. This is putting a strain on hay and silage stocks yet has resulted in only a small price increase this week.
- The most active buyers in the market are dairy farmers and there is a general trend of buyers seeking bulk over quality.
- It is expected that there may be further price rises in weeks to come if the high levels of demand continue.
- Cereal hay: +$5 ($230 to $280/t). Top end price parameters have increase this week.
- Lucerne hay: +/-$0 ($310 to $330/t). Prices remain steady this week.
- Straw: +$5 ($170 to $200/t). Top end price parameters have increase this week.
- Pasture hay: +/-$0 ($170 to $230/t). Prices remain steady this week.