National Summary
- This week, we saw less buying recorded again in most regions around the nation. The slowing in market activity is in some cases reflective of a more positive outlook for farmers and an easing in demand off the back of a good start to the cropping season and a renewed access to pasture feed after a wet first month of winter.
- One notable thing this week was a reduction in the number of active buyers in the market. There have been a number of key reasons sighted for this, ranging from tight cash flow to high prices driven by limited supply.
- There were no major changes to hay prices this week, but reports indicate prices could ease shortly as the market continues to slow down through winter.
Northern Australia
- There is now a varied demand between regions in the country’s North as some patches along the coast continue a dream run for both new crops and pasture growth.
- The rainfall has constantly missed some regions around the Downs and to the West however, and with cooling temperatures these areas have a renewed strong demand for hay.
- As mentioned in previous weeks we continue to hear reports of a push for quality off the back off milk price cuts and farmers chasing value for money. This has resisted any easing in prices and saw most hay traded at the top end of the pricing scale.
Southern Australia
- Despite the positive start to the season and good rainfall providing ample pasture throughout Southern regions, limited supply of hay is keeping demand going and holding up prices from falling this week.
- There continues to be good volumes of hay in SA regions and this is still being utilised by Victorian farmers. The number of new orders has slowed however. Reports indicate that as a result of tight cash flow situations for many dairy farmers, most will be feeding in a hand to mouth manner over winter which is expected to see a further reduction in trading and possibly price.
Western Australia
- With the continued strong start to crops throughout much of the Western regions, growers are reporting a positive outlook and are expecting a strong focus on home grown fodder next season.
- Keeping hay prices to a premium though is the limited supply throughout the state currently. 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
- This week, once again there was little change to the Atherton hay market with a supply still meeting a steady demand.
- 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 varied demand for hay in the region, dependant mostly on rainfall.
- Heavy rainfall has reached some parts of the region and now provided good pasture to some farmers but skipped others.
- Reports indicate that there is limited hay available in the region; however a number of farmers are utilising feed alternatives such as cotton seeds and almond hulls.
- 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 are also good volumes of sorghum stubble available for around $150/t.
- 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
- With the region having enjoyed a number of heavy bouts of rainfall in recent months, farmers are reporting plenty of paddock feed and limited need for purchased fodder in large volumes. This is limiting any changes to prices with few buyers active in the market.
- Reports indicate there are no expected 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
- There were no changes to hay prices this week however reports indicate this could change in the coming weeks as beef prices hit record highs.
- Mixed reports continue to come from growers about the impact of heavy rainfall on crops. Some farmers have continued to report good growth after an early jump while others have had crops completely flooded.
- Demand for hay from Victorian buyers has dropped off and most trading is now being done within the region as the temperature cools off.
- There are still good volumes of hay available in the region but a great deal is weather damaged. 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
- With the limited demand for fodder in the region there was again no changes to hay prices this week.
- Good pasture availability and silage stores are providing a positive outlook for 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.
- 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 is now very little hay left to trade in the region bringing the market to almost a standstill.
- Most of the hay coming into the region is from NSW and SA however buying has been limited due to recent milk price cuts.
- As a result of the cuts some farmers are offloading cattle rather than on 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. Others 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
- There continues to be a high demand for fodder throughout the Gippsland region but buying has eased considerably in the past weeks.
- The main reasons for this, milk price cuts which see a number of farmers doing it tough resulting in may looking at feed alternatives other than hay and silage.
- Feed alternative such as palm kernel and almond hulls are trading well and a push for straw was noted this week.
- 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.
- Comments suggest that farmers are expected to buy hay in bare minimum quantities to keep cattle going through winter. This is likely to limit any major changes to prices.
- As a result of the positive start to the cropping season and tight cash flow situations common throughout the region, 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
- Milk price cuts continue to have a negative impact on dairy farmers and with low supply keeping prices to a premium, the general slowing the market continued also this week.
- Farmers are now reportedly buying exclusively in small volumes and feeding in a hand to mouth manner.
- Recent rainfall throughout the region is producing good levels of pasture availability, contributing to the slow market and lessening the immediate need for purchased fodder.
- There was a shift in interest toward straw this week with most buyers now paying $170.
- The region’s rainfall also continues to provide a 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 remain steady this week.
- 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
- There continues to be hay moving throughout from the region into Victoria, however the number of new orders have eased significantly as rainfall continues to provide a more positive outlook for Victoria.
- As its been for a number of months now, there continues to be limited trading done within the region as most farmers have now reportedly stored enough stocks of fodder on hand.
- Nevertheless there still appears to be good volumes of fodder available within the region.
- Cereal hay: $0+/- ($220 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
- Similarly to the South East, the region continues to supply Victoria with fodder after a poor season.
- However the good start to this year’s crops in Vic, as well as tight cash flow for many dairy farmers has seen this ease in the past fortnight.
- Good volumes of hay are reportedly still available in the region.
- The export market 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 ($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
- The Southwest continues its good start to the season and demand for purchased fodder is back from previous weeks.
- Reports indicate good pasture availability is being noted by most farmers and has taken pressure off areas with limited stored hay.
- With temperatures cooling through, we could see a number of buyers re-enter the market which should at least see current prices maintained.
- 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 is still a strong demand for purchased fodder in the Northwest but buying seems to have slowed with tight cash flow noted from dairy price cuts and floods.
- A positive note for the region is that rainfall over the past month has begun to provide good pasture availability in most parts of the state, breaking away from the drought-like conditions.
- Cool temperatures and frosts will keep the pressure on for farmers though and keep the market active.
- The particularly high prices we noted previously which would generally be considered unviable to anyone with a commercial focus, are now becoming less prevalent.
- 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.