National Summary
- With winter now in full swing and new crops off to a mostly positive start, this week we saw a general slowing in the fodder market around the country.
- In the Northern regions, particularly towards the coast, less demand is being reported by farmers who are experiencing moderate pasture growth despite the cooler temperatures. There still appears to be good volumes of hay spread throughout these regions but quality remains variable.
- Heading South, the strong break is yet to let up with rainfall reaching even the driest regions. There are generally positive reports on the crops however there are some areas where flooding has been an issue.
Northern Australia
- Despite cooling temperatures, the recent and ongoing winter rainfall has now provided a good base of paddock feed across many Northern regions.
- This has slowed any demand for hay and reduced the comments on doubts about hay supply through winter for most farmers.
- We continue to hear reports of a shift in enquiry to hay with higher feed quality. Most farmers are requesting feed analysis 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.
- Due to the slow market, farmers expect no considerable changes to prices or any considerable lift in demand for some weeks.
Southern Australia
- Much of Victoria continues to report a good start to the season with good pasture availability now being noted in most areas throughout the state. There have been some reports of it getting too wet in some areas in the state’s North.
- The Southernmost state holds probably the most demand for purchased fodder in the region with supply barely keeping up with demand. Buying has slowed here also though as dairy producers struggle with poor milk prices and the resulting tight cash flow.
- Good volumes of hay still remain in SA and small increases to price occurred this week through continued sales to the neighbouring states.
Western Australia
- Once again this week there were no major changes to hay prices in the West. The renewed combination of good pasture availability and a significantly early start to crops are providing a positive outlook for farmers.
- Keeping hay prices to a premium though is the limited supply throughout the state. As farmers chip away at what’s left with no immediate urgency, reports suggest there will be limited changes in the market in the coming weeks.
Regional Commentary
Atherton Tablelands
- The trend of slow trading conditioned this week as limited demand for purchased fodder is being reported throughout the region.
- 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.
- Farmers buying small volumes for cattle weaning are keeping the market going somewhat however this is not having any impact on prices.
- A number of reports have indicated that the market isn’t expected to show drastic changes in the foreseeable future.
- 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 continues to be discussion regarding the limited hay available in the region, however good rainfall over recent weeks has brought about a positive outlook for farmers.
- As good rains have been received in most of the Downs paddock feed is becoming more available and for hay demand is generally low in the region. Most demand is coming from farmers weaning cattle.
- Milk price cuts have resulted in many farmers reassessing 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
- Widespread rainfall has sustained pasture availability throughout the region keeping the need for purchased fodder to a minimum.
- Reports indicate there will be no major changes in demand or price in the coming weeks.
- Off the back of last year’s rains there are some issues with hay 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
- Strong rainfall continues to prove a double-edged sword for farmers in the region. Some are experiencing a good start to the season while there have also been reports of crops being waterlogged.
- Demand for hay from Victorian dairy farmers has dropped following the arrival of rain and the milk price cuts limiting farmer’s cash flow.
- There were no changes to hay prices this week however reports indicate farmers are searching for quality hay and good value for money.
- Weather damaged hay is still available in this region but is in most cases not moving. If you are purchasing fodder in the Central West, we recommend getting a feed analysis to ensure quality.
- Cereal hay: +/-$0 ($220 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
- Good supply of home grown fodder and pasture availability continue to limit the need for farmers to purchase hay in the region.
- This has again this week resulted in no major changes to market prices
- 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.
- 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
- With little hay available in the region, this week there were no changes to hay prices as most buyers are now report sitting out of the market.
- Recent milk price cuts have also had a large impact on trading. Some farmers are offloading cattle rather than purchasing feed.
- Beef producers are keeping the market going somewhat and continue to enjoy good beef prices.
- Good rainfall in recent weeks has improved the outlook for a number of farmers with a promising start to the season. Other have had too much rain and there are reports of waterlogged crops.
- Cereal hay: +/-$0 ($220 to $260/t). Prices remain steady this week.
- 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
- Trading in the region has reportedly slowed further this week, with limited new orders and far less hay moving throughout Gippsland.
- A number of farmers in the region continue to do it tough as poor milk prices limit cash flow and their ability to purchase fodder.
- 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 growth 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.
- The start to the cropping season has been a positive one though and reports indicate many farmers will focus on home grown feed next year.
- 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 slowed further this week as reports indicate little trading being done throughout.
- Milk price cuts continue to negatively impact dairy farmers ability to purchase fodder. Low supply within the state is however limiting most reductions in price.
- There was however a reduction in price for protein this week as some growers try and get last year’s stock off their hands.
- Widespread rainfall continues throughout the region and comments suggest a mostly positive start to the new season’s crops.
- Most of the hay purchased in the region is coming from SA. Reports suggest that fodder coming from Southern NSW seems to have slowed.
- Cereal hay: +/-$0 ($280 to $310/t). Prices remain steady this week.
- Lucerne hay: -$3 ($340 to $360/t). Prices for lucerne fell slightly this week. The price for vetch has also eased to roughly $350/t.
- Straw: +/-$0 ($150 to $170/t). Prices remain steady 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
- Despite demand easing from Victorian buyers again this week, a small price rise for cereal hay was noted.
- There continues to be limited trading or buying done within the region as most farmers have now reportedly have enough stocks of fodder on hand.
- The still appears to be good volumes of fodder available within the region.
- Cereal hay: +5 ($220 to $260/t). Prices rose 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
- The region recorded a slight rise in the price for cereal hay this week. This rise reflects the interest from Victorian buyers, as hay buyers from within the region remain few and far between and mostly from the feedlot sector.
- Good volumes of hay are reportedly still available in the region.
- 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: +$10 ($220 to $250/t). Prices have risen 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 a mostly positive start to the season being noted across the whole state, the demand for purchased fodder eased again 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 has been a general slowing in buying this week despite a constant demand being reported by famers.
- A positive note for the region is that rainfall over the past month has begun to provide good paddock feed in most parts of the state breaking away from the drought-like conditions.
- In some areas though, floods have added to the pressure caused by milk price cuts resulting in more farmers sitting out of the fodder market.
- The particularly high prices we noted previously which would generally be considered unviable to anyone with a commercial focus, are now becoming less prevalent however.
- With that said, most hay is still selling at the top end of the pricing scale due to the continued low supply.
- 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.