National Summary
- This week we have seen a general slowing of demand however there are yet to be any real price changes being observed yet. Rainfall is being noted as one of the drivers for the reduced demand.
- Rainfall has fallen in a number of regions in both the North and South of the country, in many cases easing demand by topping up pasture and providing a more positive outlook for farmers generally. In some instances, particularly in the South, the rain has brought an end to unseasonably dry conditions and in others to the North it has extended paddock feed and reduced the immediate need for purchased fodder.
- The recent milk price cuts ha been a key contributing factor to the slowing in the market and there are continued reports of dairy farmers selling cows or looking at low cost feed options rather than buying hay where some buyers are now having to offload cattle or look to other feed option rather than buy hay at premium prices.
Northern Australia
- In the Northern regions, recent heavy widespread rainfall has again rejuvenated pasture growth and availability.
- Despite the topping up of grass feed though, cooling temperatures will result in a growing interest and number of enquiries for hay, but no major lift in buying has occurred as yet.
- Reports indicate that farmers expect no considerable changes to the market for some weeks with only a few reports of anyone having an immediate need for large volumes of purchased fodder.
Southern Australia
- We are now seeing a wider spread in demand from regions in the South as rainfall gives some farmers a more promising outlook and relief from the long dry summer/spring. The rain is however yet to have any major actual impact yet in terms of availability of paddock feed.
- With limited hay still available in Victoria or Tasmania, buyers continue to move feed from South Australia and New South Wales but new orders have reportedly slowed overall as rains bring the hope pasture growth.
- Also contributing to this downturn in buying are milk price cuts which have restricted dairy farmer’s cash flow and therefore ability to purchase feed.
Western Australia
- The almost perfect start to the new season continues this week in the West with ample rain and sunshine giving both pastures and crops a great start. This comes as a welcome relief from the previous poor season and is providing a more positive outlook for farmers dealing with limited fodder supplies.
- There continues to be a lot of hay transported around the state but reports indicate that this is mostly old contracts.
Regional Commentary
Atherton Tablelands
- Despite the drying out of pasture and cooling temperatures there continues to be limited demand for purchased fodder in the region. Accordingly there were no changes to hay prices this week.
- This comes as a result of good stores of home grown feed in most parts of the region however; some farmers are expressing concerned over the availability of water for irrigation and the impact this may have later in the year.
- Reports indicate that demand for fodder driven by the live export cattle sector has eased.
- Most of the trading in the region continues to be from farmers buying small volumes for weaning cattle.
- Due to the ample summer rainfall, reports indicate that good stocks of Rhodes grass are available in the area.
- 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 a jump in interest for purchased fodder this week however, this is yet to impact prices with supply so far meeting demand.
- The main drivers for purchasing fodder continue to be 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.
- Cereal hay: +/-$0 ($300 to $340/t). Prices for cereal hay remain steady this week however there are limited amounts high end quality hay 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
- With more rain on the way to refresh the plentiful pasture available in the region, hay growers in North Coast NSW are still reporting a low demand for purchased fodder.
- However demand for purchased fodder from surrounding regions has significantly increased, resulting in a price rise this week.
- Reports do continue to indicate that prices could increase further as the weather continues to cool off.
- The heavy summer rainfall experienced throughout the region late last year has caused some issues with quality, careful inspection is therefore recommended. Badly weather damaged cereal hay is fetching around $160/t.
- Cereal hay: +10 $0 ($280 to $310/t). Prices have risen 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
- The rush of buying that was reported in the past fortnight from both within the region and from Victoria has slowed up again this week.
- Milk prices cuts have limited many Victorian dairy farmers ability to pay for hay and the associated transport cost. Wet weather has slowed interest in NSW by providing some potential for pasture growth later on in the year.
- There were no changes to prices this week with comments suggesting that prices outside the reported price brackets being asked but so far these are being rejected.
- 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
- Rainfall has eased interest in purchased fodder this week as most farmers continue to enjoy good supplies of silage and pasture.
- There continues to be a moderate level of enquiry by farmers planning ahead as hay supply could potentially run thin later in winter.
- As a result of good summer rainfall, there have been some issues with hay quality so careful inspection is recommended when looking to buy.
- Reports indicate that with limited hay moving into the region at this point, the best indicator for market change continues to 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
- The downturn in buying has continued this week as most of the hay now moving about the region is from contracts made earlier in the year.
- Recent milk price cuts have slowed the number of new buyers entering the market and some farmers are offloading cattle rather than purchasing feed, reports say.
- Beef producers are keeping the market going somewhat and continue to enjoy good beef prices.
- 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.
- 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
- Milk price cuts have had an adverse impact on the demand for purchased fodder in the region as a number of farmers are forced to offload cattle rather than purchase feed.
- Good rainfall has reached to region recently, but farmers are still some weeks away from this resulting in significant paddock feed. There was some discussion that this could see an increased interest in protein hay in the short to medium term.
- Many farmers who typically would be looking to buy hay and silage are instead purchasing lower cost feed alternatives such as almond hulls.
- 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
- Large volumes of hay continue to be transported throughout the region this week; however reports indicate a significant drop in new orders, largely due to milk price cuts restricted dairy farmer’s cash flow.
- Good rainfall has brought an end to unseasonably dry condition across much of the state and pasture growth is expected to provide more home grown feed. This is expected to ease interest in cereal hay further in the coming fortnight.
- Despite tightening up of cash flow from many dairy farmers there has been resistance from growers and hay traders to ease prices. This comes in many cases as a result of necessary costs for transport.
- There continues to be good volumes of fodder coming to the region from SA and Southern NSW.
- Vetch continues to be traded widely at around $360/t.
- 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). however there is little to no pasture hay available in the region at present.
Southeast South Australia
- There continues to be demand from Victorian buyers this week, keeping the market busy and a number of trucks on the road. Given the reduction in demand currently being noted in Victoria it is uncertain how long this will continue.
- No changes in price occurred this week after the previous week’s rise.
- 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.
- Cereal hay: +/-$0 ($210 to $260/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($310 to $350/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 however there is little to no pasture hay trading.
Central South Australia
- Strong interest continues from Victorian buyers looking to bolster supplies.
- There were reports this week of growers in the region asking higher prices for hay, but this has been mostly rejected with buyers sighting the cost of transport as being a key inhibitor to any price increases.
- Reports indicate that the only consistent buyers within the region are from 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
- Demand for purchased fodder has eased considerably this week as good rainfall over the past month continues to provide plentiful pasture and an ideal start to the new season.
- Previous comment suggesting a shortage of hay for the winter ahead have also been quietened with most farmers now having a positive outlook due to a good start for new crops.
- With more rain on the way, reports suggest the only thing growers are now nervous about is the impact of frosts as the weather continues to cool off.
- 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
- There continues to be a strong demand for fodder in the region with limited supply throughout the state keeping prices high.
- Good rain has been received throughout the state but pasture is yet to properly take off in the Northwest.
- Cold temperature and frost have meant farmers have had to keep the feed up to cattle and continue buying or offload stock.
- Milk price cuts have had an impact on a number of farmer’s ability to buy feed, reports say.
- Again we are seeing hay and silage advertised throughout the region 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: +$0 ($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.