National Summary
- This week around the nation we saw a general easing in demand for purchased fodder. This has come off the back of substantial rainfall and a promising cropping season looking probable for many regions.
- Areas which suffered through a long and particularly dry summer combined with below average production have experienced some respite as good grass feed becomes available and takes the immediate pressure off farmers.
- Looking longer term, milk price cuts also continue to contribute to this downturn in buying. Reports indicate that a number of farmers have been forced to cancel orders of hay, look into cheaper feed alternatives or offload cattle due to tight cash flow. The combination of these factors is expected to result in a slower market for the coming weeks.
Northern Australia
- Good pasture growth continues to limit any urgency in buying large volumes of hay in the North as ongoing rainfall reaches both the coastal regions and drier areas in the West.
- There have been reports this week of a shift in enquiry to hay with higher quality feed. Most farmers are requesting feed tests and are particularly mindful of getting value for money after the milk price cuts which have put a squeeze on cash flows. This has resulted in most hay trading at the higher end of the pricing scale despite slowing demand.
- 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
- The promising start to the new season continues for farmers in the South as good rainfall regenerates pasture growth and kick starts crops across Gippsland, Goulburn Valley and Western Victoria.
- Tasmania is however not experiencing the same good fortune as drought affected regions in the North now face the task of rebuilding after floods.
- Both these influences, good and bad, have this week resulted in a general slowing of hay buying across all regions in the South.
Western Australia
- There were no major changes to hay prices in the West this week as good pasture availability and a strong early start to the season are providing a positive outlook for farmers.
- There is limited hay available after a poor previous season so prices remain high. Reports suggest there will be limited changes in the market in the coming weeks.
Regional Commentary
Atherton Tablelands
- There were no changes to hay rices this week as a result of a continued low demand and limited trading.
- Reports indicate good stores of home grown feed in most parts of the region however some farmers are expressing concern over the availability of water for irrigation and the impact this may have later in the year.
- Most of the trading in the region continues to be from farmers buying small volumes for weaning cattle.
- A number of reports have indicated that the market isn’t expected to show 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
- There were no changes to hay prices this week as supply continues to meet demand despite limited pasture being available throughout the region.
- With good rain bringing drought relief to the West and limited demand from down the coast, demand is generally low in the region and mostly coming from farmers weaning cattle.
- Milk price cuts have resulted in many farmers reassessing or more closely utilising their feed budgets and there has been a strong emphasis on high quality hay in recent weeks. This has resulted in most hay being traded at the top end of the pricing scale.
- There has also been a slight jump in interest in feed alternatives such as almond hulls and cotton seeds.
- Cereal hay: +/-$0 ($300 to $340/t). Prices for cereal hay remain steady this week.
- 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
- There continues to be a low demand for fodder in the region as wet weather continues to see good conditions for pasture growth.
- As the weather cools off and pasture growth slows some farmers are expecting a price rise could occur as demand goes up.
- The heavy summer rainfalls experienced throughout the region late last year has caused some issues with quality and careful inspection is therefore recommended. Badly weather damaged cereal hay is fetching around $160/t.
- Cereal hay: +/-$0 ($280 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
- Demand for purchased fodder in the Central West has eased over the past fortnight after good rainfall has boosted pasture growth.
- Demand for hay from the region from Victorian dairy farmers has been reduced, mainly due to the arrival of rain and milk price cuts limiting cash flows.
- There was a slight rise in the bottom end of pricing this week however, reflecting the farmers desire for good quality hay.
- Weather damaged hay is still available in this region but is now not moving. If you are purchasing fodder in the Central West, we recommend a feed test to ensure quality.
- Cereal hay: +$10 ($220 to $260/t). Prices have risen 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
- There continues to be limited demand for purchased fodder in the region with plentiful pasture and home grown silage available to most farmers.
- The comments we had previously noted about concerns over how long on farm stocks of hay would last have now been quelled as further rain has boosted pasture growth, providing a positive outlook for farmers.
- There have been some issues noted 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
- There continues to be little hay traded within the region as limited supply remains.
- Recent milk price cuts have had a large impact on trading by reducing the number of new buyers entering the market. 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 a number of farmers in the region will have to look to transport hay greater distances than usual as supply becomes tight over winter. Good rainfall in recent weeks has improved this outlook somewhat.
- 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 however this is based on limited trading.
Gippsland
- The Gippsland hay market has seen a strong downturn in buying over recent weeks as milk price cuts has restricted cash flow for many buyers
- Also impacting buying is the good rainfall which has reached to region recently. For the South of the region, this rainfall has begun to provide good pasture for the first time this year.
- Many farmers who typically would be looking to buy hay and silage are instead purchasing lower cost feed alternatives such as almond hulls.
- Comments suggest that farmer are expected to buy hay in bare minimum quantities to keep cattle going through winter. This is likely to limit any major changes to market prices.
- 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
- The region’s hay market has slowed significantly in the past fortnight.
- Reports indicate a number of hay trucks continue to deliver feed across the state but the number of new orders have diminished due to good rainfall bringing paddock feed and also tight budgets from dairy farmers after milk price cuts.
- 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 continue to be good volumes of fodder coming to the region from SA but hay coming from Southern NSW seems to have slowed.
- There is still a strong demand for protein hay in the region but supply is becoming increasingly tight. Some vetch is still available at around $360/t.
- There has been a price increase for straw this week. The demand for straw his risen slightly going against the general trends of the market as farmers look for a cheaper feed or to top up sheds.
- 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: +$8 ($150 to $170/t). Prices rose this week.
- Pasture hay: +/-$0 ($180 to $220/t).Prices remain steady this weekhowever there is little to no pasture hay available in the region at present.
Southeast South Australia
- The demand from Victorian buyers which has boosted the region’s hay market over the past month has shown signs of slowing this week.
- There were however no changes to prices though despite the drop in demand.
- Reports indicate there are still good volumes of cereal hay available in the region.
- Most farmers within the region seem to have stored enough fodder for the winter and are 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
- Good volumes of hay still exist in the region however little is moving at present. Local demand continues to be low, and interest from Victorian buyers has eased this week.
- 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 and is having limited impact on the current prices.
- 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
- With the new season continuing to show signs of being a good one for growers, a positive outlook has eased demand for purchased fodder this week.
- Reports indicate good pasture availability is being noted by most farmers and has taken pressure off areas with limited stored hay.
- 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.
- Despite the demand and need for purchased fodder, buying has slowed this week as recent floods and milk price cuts continue to negatively impact farmer’s cash flow.
- There is still talk of some buyers considering bringing fodder across form the main land as stocks remain low across the state.
- 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.
- 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.