National Summary
- Despite two weeks since our last report, there were limited changes in hay prices this week. Many farmers put this down to the time of year, with new crops in and seemingly going well around the country. This has been boosted by helpful rainfall in most regions and pasture is now in good supply across the board. The only obvious exception to this is parts of Queensland, which are still in drought.
- However there was notable increase in trading this week. Reports indicate that the initial rainfall resulted in a pause in buying, but now farmers are again entering the market. This continues to be in small quantities for the most part however, as tight cash flow is a problem for many in the diary industry.
Northern Australia
- The level of demand in the Northern regions continues to be a mixed bag. Along the coast and in Northern NSW, farmers have consistently had a good start to the season and are buying in steady but small volumes.
- Drought-affected Central Queensland, Atherton and the Downs have all had patchy rains but there continues to be limited pasture availability. Many farmers in these regions have destocked their herds after numerous poor years and the low number of cattle is also limiting any changes to the market.
- There is reportedly large volumes of hay and silage available throughout the North, but traders are concerned that only limited stock is moving. This has resulted in some easing of prices this week and could again in the future.
Southern Australia
- In the South this week we saw hay trading increase once again. This comes after several weeks of slowing as good rain and poor cash flow prevent buying in equal shares.
- Prices have mostly remained consistent across the board throughout the fluctuating demand and this week we saw little movement.
- 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 is well back from the previous month however, and most farmers are now feeding only the bare minimum and in a hand to mouth manner.
Western Australia
- The past fortnight has seen more rain but cooler temperatures in the West. General demand for purchased fodder has eased a great deal, however prices have not eased as reports indicate a limited supply throughout the state.
- With plentiful pasture available throughout the region we saw a shift to straw this week resulting in a slight rise in price.
Regional Commentary
Atherton Tablelands
- Low volumes of fodder are being traded in the region this week with little demand coming from farmers.
- A number of farmers have reportedly destocked or are feeding in a hand to mouth manner keeping trading slow.
- There are good stores of hay available in the region however traders have noted they are experiencing difficulty moving it.
- This has resulted in some cheap sorghum and millet hay becoming available as growers try and make room for the coming season.
- Irrigated farmers are expressing concern over the availability of water for irrigation and the impact this may have later in the year.
- 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
- With patches of the region experiencing good rainfall and a perfect start the season and others missing out completely, the demand for purchased fodder is varied.
- Buying in general remains slow in the region. This is not expected to change until harvest however prices could ease as farmers try and offload last season’s hay.
- Due to the price of hay a number of farmers are utilising feed alternatives such as cotton seeds and almond hulls.
- 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
- Good pasture availability and full sheds off the back of a strong previous season has many farmer in the region sitting out of the market this week.
- This is limiting any changes to prices with limited trading taking place.
- Reports indicate that due to the current positive situation 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
- Most farmers are now reporting a bumper start to the cropping season and have a positive outlook for the coming months.
- This has slowed buying for purchased fodder within the region however demand is still coming in steadily from Victoria and to the North.
- Demand from within the region is expected to grow 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
- The positive start to the season continues for Bega and with a combination of good pasture and stores of hay and silage, demand is low.
- This has resulted in limited trading over the past few months and off the back of this, no change to 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
- This week a lift in trading has been noted in the region.
- Good rainfall and a positive start to the season have provided a positive outlook and reportedly attracted a number of farmers back into the market.
- With limited supply in the region buyers are looking to NSW and SA for fodder.
- There were no changes to prices this week despite the boost in trading. Reports indicate these prices are at a comfortable level and expected to remain the same in the coming weeks.
- There were also comments this week that enquiries were again coming from the South West and Gippsland, suggesting a lift in demand throughout Victoria.
- 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
- With good pasture availability now spreading across most of the region the pressure on the dairy sector has eased somewhat but not completely.
- Demand remains high for farmers in the region but buying slower than last month.
- Similarly to the rest of Victoria which dried out too early last year, the reprieve from dry conditions slowed the market but has returned this week.
- To combat high prices feed alternative such as palm kernel and almond hulls are trending.
- There was also a greater push for straw noted this week.
- 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.
- With 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
- There was a small rise in buying this week in the Southwest however reports indicate a number of farmers are ‘leaving it to the last minute’ and feeding hand to mouth.
- This limits any great surge or reduction in prices, however the most expensive cereal hay has fallen slightly, as it is reportedly no longer moving.
- Most of the hay purchased in the region is coming from SA. Reports suggest that fodder coming from Southern NSW seems to have slowed.
- 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.
- The region’s rainfall also continues to provide a positive start to the new season’s crops.
- Cereal hay: -$5 ($280 to $300/t). Prices eased this week.
- Lucerne hay: +/-$0 ($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
- This week the trend of hay moving from throughout region into Victoria continues but seems to have slowed a great deal.
- This has been largely attributed to the equally strong start Vic has had to the season compared to SA.
- 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
- There continues to be hay traded in the region to farmers in Victoria, but this has slowed over the past fortnight.
- Prices have remained unchanged however.
- There have been a number of comments suggesting that there are still good volumes of hay 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). No change in prices 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 terrific start to the season in WA has continued over the past fortnight and has resulted in a growing number of farmers reporting a positive outlook for the year ahead.
- Last year’s poor season resulted in the amount of hay made measure well below average across West, so despite the low demand now, limited supply is keeping prices up at the moment.
- With temperatures cooling, comments suggest most farmers have been forced to continue topping up sheds with hay and straw.
- This saw a $10 increase in straw prices this week.
- 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: +$10 ($110 to $130/t). Prices rose this week.
- Pasture hay: +/-$0 ($160 to 200/t). Prices remain steady this week.
Northwest Tasmania
- Rainfall has kept coming in the region and has begun to provide good pasture availability in most parts of the state, breaking away from the drought-like conditions.
- Cold weather slowed this process though and demand for purchased fodder is still high enough for hay traders to consider fodder from the mainland.
- It appears that while market remained steady this week, the particularly high prices we noted previously which would generally be considered unviable to anyone with a commercial focus, have disappeared.
- With that said, most hay continues to be sold 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.