National Summary
- This week we saw widespread rainfall across Southern regions while the North continued to dry out. This saw the contrast between the two ends of the nation continue again this week.
- Contrary to the past month’s continuous inflation in demand for fodder and a series of price rises; this week saw a distinct slowing in buying in the South. The main drivers for the slowing of buying were noted as being cuts to milk prices limiting cash flow and, more positively, the arrival of long awaited rainfall.
- The Northern regions, many of which having experienced good summer rainfall, have now begun to dry off causing a rise in interest for purchased fodder. This has not yet had an impact on pricing but comments suggest price increases could occur with buyers enter the market as winter draws nearer.
Northern Australia
- While good pasture availability still exists around coastal regions, rainfall is becoming less consistent across the North, which is now reportedly starting to dry out across the board.
- This has resulted in the hay market moving again after a prolonged stagnant period for trade but a plentiful pasture and silage situation. The number of enquiries has lifted and demand for hay is up from previous weeks.
- As winter draws closer, this is expected to increase further and may impact pricing. This week however, prices remained steady across the board.
Southern Australia
- Heavy rainfall has fallen throughout much of the Southern regions this week bringing a more positive to outlook to a number of farmers particularly in Gippsland and Tasmania. This rain along with cuts to milk prices has resulted in less buying from farmers this week.
- The market remains generally strong however, with good volumes of hay continuing to move throughout the region. Reports indicate the majority of available fodder is now in South Australia or New South Wales, and supply in Victoria is becoming thin.
Western Australia
- There continues to be variable levels of demand for hay in the West as some parts of the region enjoy good silage and pasture availability from summer rains while other are heavily reliant upon purchased fodder.
- Comments regarding hay supply for the domestic market over the coming months continues to cause concern amongst some farmers, with interest coming from a number of areas that typically do not purchase fodder.
- Reports indicate that further increases to hay prices could occur, which has lead a number of buyers to investigate other feed alternatives alongside hay.
Regional Commentary
Atherton Tablelands
- Recent rainfall continues to see growth of pasture in the area providing a positive outlook for farmers.
- Reports indicate that demand for fodder driven by the live export cattle sector has eased.
- Due to the limited volumes of hay being traded in the region, there were no obvious price movements this week.
- Most of the trading in the region continues to be from farmers buying small volumes for weaning cattle.
- Good summer rainfall has allowed for good volumes of rhodes grass hay to be made in the region.
- Reports indicate that despite generally good availability of pasture at the moment there is some concern over water availability for irrigation.
- Most predict that the market won’t show any drastic changes in the foreseeable future as reports indicate most farmers have a good supply of hay in sheds already.
- Pasture hay: +/-$0 ($300 to $400/t). Prices remained steady this week with the large price spread reflecting the increased cost of producing irrigated hay.
Darling Downs
- Reports indicate that the level of interest in hay has lifted this week. This has yet to have any impact on pricing however.
- There have been some comments that a price increase could occur in the coming weeks as demand grows.
- Currently, most demand for hay continues to come from farmers weaning cattle.
- Some farmers are predicting there may be a tight supply for hay this winter. As long-term contracts are being favoured by sellers we recommend contacting suppliers early if you have a known need for fodder over the coming months.
- Good quality millet hay is available but trading slowly. Lucerne and cereal hay are reportedly in limited supply.
- Cereal hay: +/-$0 ($300 to $340/t). Prices for cereal hay remain steady this week however there are limited amounts available on the market.
- Lucerne hay: +/-$0 ($430 to $500/t). Prices remain steady this week.
- Straw: +/-$0 ($140 to $180/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($260 to $310/t). Prices remain steady this week.
North Coast NSW
- The region continues to enjoy a favourable season with plentiful home grown fodder delaying any need for large volumes of purchased feed.
- A week of hot weather has begun to dry the region out however, and reports indicate enquiry for fodder is picking up.
- With only limited amounts of hay moving at this stage though, prices have shown no obvious changes this week.
- The plentiful summer rainfall experienced throughout the region has caused some issues with quality, careful inspection is therefor recommended.
- Cereal hay: +/-$0 ($260 to $310/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 (130 to 180/t). Prices remain steady this week.
Central West NSW
- Reports indicate a significant boost in demand in the region this week with good volumes of hay now being traded.
- Despite the increased demand prices have held steady with no changes this week.
- Hay buyers from Victoria are now looking to access stocks from this region, which could stretch fodder stocks locally over the coming months.
- Through harvest we heard reports that there was weather damage to some hay. While this does not account for all the hay available today, careful inspection is recommended.
- Cereal hay: +/-$0 ($200 to $260/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($270 to $350/t). Prices remain steady this week; however comments suggest that due to a steady increase in demand a limited supply, lucerne prices could increase in the coming weeks.
- Straw: +/-$0 ($130 to 150/t). Prices remain steady this week.
- Pasture hay: +/-$0 N/A. There are no reports of pasture trading.
Bega Valley
- Another week of good silage making conditions have held off any need for substantial orders for hay in the region. This has been helped along by unseasonably warm weather which is now expected to continue for the coming weeks.
- As a result of good summer rainfall, there have been some issues with quality and careful inspection is therefor recommended.
- Reports indicate that with limited hay moving into the region at this point, a good indicator for market change may be the prices in the Central West region.
- Cereal hay: +/-$0 ($230 to $280/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($330 to $380/t). Prices remain steady this week.
- Straw: +/-$0 ($160 to $180/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($240 to $260/t). Prices remain steady this week.
Goulburn/Murray Valley
- Heavy rainfall has fallen in the region over the past fortnight providing farmers with a positives outlook for the season ahead.
- The limited hay still available in the region continues to be traded at the top end of the pricing scale, however the market has slowed.
- There continues to be commentary that suggests number of farmers in the region will have to look to transport hay greater distances than usual as supply becomes tight over winter.
- Reports indicate that good volumes of hay in this region continue to be transported to various regions in Victoria, however this is mostly for long-term contracts.
- Cereal hay: +/-$0 ($220 to $260/t). Prices remain steady this week however most cereal hay is being sold for $260/t.
- Lucerne hay: +/-$0 ($300 to $340/t). Prices remain steady this week.
- Straw: +/-$0 ($120 to $150/t). Prices remain steady this week however there is limited availability.
- Pasture hay: +/-$0 ($150 to $170/t). Prices remain steady this week.
Gippsland
- Some rainfall has fallen across the region’s driest areas in the South, however this has not yet been substantial enough to kick-start pasture growth.
- Reports indicate that recent milk price cuts have slowed the buying of fodder, with many farmers now offloading cattle rather than buying feed.
- Much of the rest of Gippsland has experienced good rainfall recently but buying is also slow due to good availability of home grown fodder.
- With an elevated demand now throughout the state, there is limited hay available in the region.
- Cereal hay: +/-$0 ($250 to $320/t). Prices remained steady this week.
- Lucerne hay: +/-$0 ($350 to $410/t). Prices remain steady this week.
- Straw: +/-$0 ($130 to $200/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($160 to $240/t). Prices remain steady this week.
Southwest Victoria
- Strong demand continues in the region despite good rainfall throughout Victoria this week.
- Prices remain steady as reports indicate the price point has reached a level conducive to both buyers and sellers.
- Buyers are now having to look interstate for large volumes of fodder with limited supply reported to be available throughout Victoria.
- Protein hay continues to be traded steadily with equal interest in lucerne and vetch.
- Cereal hay: +/-$0 ($280 to $310/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($340 to $365/t). Prices remain steady this week.
- Straw: +/-$0 ($140 to $165/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($180 to $220/t). Prices remain steady this week however there is little to no pasture hay available in the region at present.
Southeast South Australia
- Hay prices remained unchanged again this week despite a steady increase in demand from Victorian hay buyers.
- Within the region, demand is mostly slow as a number of farmers have stored enough hay for the winter ahead and are now sitting out of the market.
- Continued strong beef prices are also resulting in many farmers selling cattle rather than buying hay.
- Cereal hay: +/-$0 ($210 to $250/t). Prices remain steady this week.
- Lucerne hay: +$25 ($300 to $340/t). Prices remain steady this week.
- Straw: +/-$0 ($110 to $130/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($160 to $240/t). Prices remain steady this week.
Central South Australia
- There continues to be limited hay moving in the domestic market again this week causing no changes to prices.
- The only consistent buyers are reportedly the feedlot sector.
- The export market on the other hand continues to see hay trucks transporting hay across the region, however the majority of this hay was contracted months ago.
- Cereal hay: +/-$0 ($200 to $250/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($280 to $320/t). Prices remain steady this week.
- Straw: +/-$0 ($110 to $120/t). Prices remain steady this week however given the impact of the fires there may be shortages of straw into 2016.
- Pasture hay: N/A. No reported trading.
Southwest Western Australia
- Good volumes of fodder continue to be transported around the region and despite no changes to prices this week; tight supply could result in increases towards winter.
- There continues to be conflicting reports of the level of demand from around the region. This is mostly reflective of the amount of summer rainfall received and therefore the available pasture.
- Reports indicate some growers are currently asking for a further $10/t but the rest of the supply chain has mostly resited this so far.
- Cereal hay: +/-$0 ($250 to $310/t). Prices remained steady this week.
- Lucerne hay: +/-$0 ($470 to $520/t). Prices remain steady this week.
- Straw: +$0 ($90 to $130/t). Prices remained steady this week.
- Pasture hay: +/-$0 ($160 to 200/t). Prices remain steady this week.
Northwest Tasmania
- The hay market has reportedly slowed this week in the region however prices remain steady.
- The backing off from farmers buying can be attributed to a combination of a more positive outlook following a week of long-awaited heavy rainfall, or a lack of cash flow following milk price cuts.
- There continues to be large volumes of hay being moved right across the state, however reports indicate that only limited amounts are still available for purchase. If you have a known need for fodder in 2016 contact your trusted hay supplier as soon as possible as long-term contracts are being favoured.
- It must be noted that we continues to hear reports of hay offered at prices that are generally considered unviable to anyone with a commercial focus. This is typically for small parcels of hay for lifestyle usage however it is having a distorting impact on the market.
- Silage is available and is trading at around $450-500/t.
- Cereal hay: +$20 ($280 to $310/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($335 to $370/t). Prices remain steady this week.
- Straw: +/-$0 ($170 to $200/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($250 to $280/t). Prices remain steady this week.