National Summary
- With the focus still on the harvest at hand, little hay continues to be traded around the country. What is being traded is of small volumes and having little impact on the market generally. We did note that in some regions this week, prices eased as growers look to free up the market. There is a general consensus that with the expected lesser quality and greater supply of the new season feed, prices will be further reduced. Exceptions to this will be some of the bigger hay growing regions hit hardest by late rainfall. Areas within Central West NSW and the Goulburn Valley may not make as much hay as predicted and demand will be up.
- Tight times for the dairy industry have also resulted in many farmers looking to grow larger volumes of home grown feed this season. Reports indicate that this could see less hay traded next year after an initial spike as the new season feed hits the market.
- Comments suggest that while the amount of hay produced nationally will be almost half of what was hoped, big crops countrywide will ensure that supply is still there. This may however not be the case for export grade fodder as quality is undoubtedly going to be an issue.
Northern Australia – Summary
- A dry finish for most of the north has made for a good start to harvest and reports indicate a promising hay season ahead.
- Supply is expected to be up this year if favourable harvest conditions continue.
- There is a low demand for fodder in the North currently with the exception of the driest regions.
- Some hay still trading is still occurring but this is either opportunistic buying or to maintain balance for feed requirements for cattle.
Southern Australia – Summary
- A number of growers are still waiting for paddocks to dry out to get harvest underway.
- This delayed start has had a negative impact on a large percentage of crops.
- Silage harvest is underway in regions where it is dry enough.
- Reports indicate that a large percentage of this year’s hay crops will now be harvested for grain.
- There were still be good volumes of hay made in the region this year.
- Quality will be more difficult to come by than in the past few years where dry finishes resulted in mostly premium feed.
- Prices are expected to be well back as a result of the excess of lower quality feed.
- With the ample grass feed available throughout the Southern regions, straw has continued to take a larger share of enquiry.
- As an ongoing consequence of reduced milk pricing, many dairy farmers continue to sit out of the hay market, focusing instead on producing their own grass and fodder, particularly silage.
Western Australia – Summary
- Low demand for fodder in the West as focus has now switched to the current harvest.
- A series of frosts and patches of rainfall have done damage to some crops.
- Limited supply is available in the region keeping prices to a premium.
- There is a possibility that prices could reduce once the new season feed hits the market.
- The weather has the season currently in the balance with most farmers predicting good supply but varied quality for hay.
Regional Commentary
Atherton Tablelands
- There was limited trading reported in the region this week despite a slight drop in prices by growers hoping to free up the market.
- Great weather for baling hay is being reported with growers likely to produce some real quality feed in the region this year.
- Prices could be reduced further as this trend of a lower demand continues with a greater supply of feed.
- After a rise in demand from cattle exporters recently, the market has returned to normal.
- Our reports indicate that there are still good volumes to be moved in sheds however this is of variable quality so careful inspection is recommended before purchase.
- Demand for small bales in small quantities remains strong but this trade is not significant enough to influence overall hay prices.
- Pasture hay: -$15 ($200 to $220/t). Prices at the top end of the pricing scale have eased this week.
- Note: Hay in the Atherton Tablelands is traditionally priced at $/bale so it is important to check bale weights for conversion to a $/t rate.
Darling Downs
- A good run of dry conditions have seen growers in the area get going for this season’s harvest with a positive outlook being reported in terms of both quality and quantity.
- New season feed is starting to creep into the market but is yet to result in any consistent changes to price.
- Hay traders anticipate a reduction in price in the coming weeks however.
- Comments suggest more cereal hay will be made in the region this year than for some time.
- A good amount of silage has been produced already in the region and is reportedly of great quality.
- It is likely that this part of the country will be depended upon to supply some Southern regions.
- More rain is expected this weekend which will again slow harvest down.
- There continues to be a strong demand from chaff mills.
- There are still areas within the Downs that have experienced very little rainfall and will have a higher demand for purchased feed.
- Cereal hay: +/-$0 ($220 to $280/t). Prices remain steady this week.
- Lucerne hay +/-$0 ($320 to $400/t). Prices remain steady this week. Some new season lucerne has entered the market and is trading at the bottom end of the pricing scale despite being good quality.
- Straw: +/-$0 ($160 to $185/t). Prices remain steady this week but this is based on limited trade.
- Pasture hay: N/A at this time.
North Coast NSW
- There were no changes to hay prices in the region this week as harvest gets underway in the region and limited hay is traded.
- Comments suggest there is low demand for purchased fodder at this time, back even from previous weeks.
- There is a good feeling about this year’s harvest with most growers reporting big crops likely to produce a large volume of feed all around the region.
- Growers have experienced a strong dry finish to the cropping season.
- It is likely that the North West will be called upon for extra supply from other regions which have now received too much rain.
- Buying in small quantities for hobbies farms continues but has no impact on the market as a whole.
- There is still adequate pasture availability in the region, also easing demand.
- Competitive prices are being thrown around for new season feed. This has also caused a number of farmers to sit out of the market until these prices firm.
- Cereal hay: +/-$0 ($220 to $250/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($280 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 in the region this week as farmers focus on harvest and look ahead to new season supplies.
- There continues to be reports of particularly wet crops to the South of the region causing the expected overall quantity to be far reduced from a normal year.
- To the North of the region where it’s been drier, we’re still hearing of some good, export quality feed being made.
- The expectation is that prices may hold when the new season product hits the market in the coming weeks. This is due to the lower level of supply and a possible need for greater freight costs transporting fodder large distances into the region.
- Pasture availability remains good and is slowing demand also.
- The hay currently available in the region can be of variable quality and it is recommended that a feed test and careful inspection of the product be undertaken before purchase. This is likely to be the case for the new season feed also.
- Cereal hay: +/-$0 ($220 to $250/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($300 to $350/t) If available and quality dependent.
- Straw: +/-$0 ($130 to $150/t). Prices remain steady this week.
- Pasture hay: +/-$0 N/A. There are no reports of pasture trading in the region.
Bega Valley
- There was little hay trading reported this week with low demand for fodder in the region.
- A mostly dry finish is likely to transfer a good winter into a bumper season for hay.
- There is still pressure on the market to ease prices as dairy farmers feel the pinch from low milk prices.
- Many dairy farmers are producing more home grown fodder this year in the hope of cutting costs.
- There is still hay available in the region from last season’s terrific year but quality can be varied so careful inspection prior to purchase is recommended.
- Cereal hay: +/-$0 ($230 to $280/t). Prices remain steady this week for good quality hay however poorer quality is selling for around $200/t.
- Lucerne hay: +/-$0 ($330 to $380/t). Prices remain steady this week.
- Straw: +/-$0 ($100 to $110/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($240 to $260/t). Prices remain steady this week.
Goulburn/Murray Valley
- Little to no hay was traded this week with a low demand being reported and limited supply.
- This week we hear reports of farmers finally getting into harvest in the region, all be it with varied success.
- The silage that’s been made so far is reportedly of mixed quality, however with a dry week this is likely to improve.
- Most paddocks are still wet and the comments suggest the season is up to a month behind schedule.
- It appears some crops destined for hay will now be turned into grain. This includes oaten crops.
- Most purchases at this point are for straw as dairy farmers balance out feed and nutrition with the good pasture that is available.
- There are limited prospects for high hay prices for the domestic market due to the potential for good supplies which is also impacting export hay with lower feed test results a potential issue.
- Standing crops are now being quoted at $80-$100.
- Cereal hay: +/-$0 ($220 to $240/t). Prices have steadied this week with limited supply.
- Lucerne hay: +/-$0 ($320 to $350/t). Prices remain steady this week although it is reported that these prices would be the higher end of the price range due to limited availability.
- Straw: +/-$0 ($110 to $140/t). Prices remain steady this week.
- Pasture hay: No supply reportedly available.
Gippsland
- There is limited hay now trading in the region as farmers focus on home grown feed.
- As a result prices have eased this week as growers try to free up the market.
- The Gippsland region has seemingly escaped the overly wet finish which dampened prospects of a bumper year in most of Victoria.
- Being a dairy focussed region, cash flow remains a major concern for farmers. This will ensure most farmers continue cover their own feed requirements and trade little hay for the coming year.
- Silage harvest is underway for a number of farmers between rain showers.
- This has resulted in mixed levels of quality.
- More rainfall is predicted next week however and this could have a negative impact on the already damp crops.
- A number of potential buyers are now sitting out of the market in anticipation of price drop due to lower demand for the new season product.
- The last two seasons have seen large quantities of bought in fodder and this has significantly impacted on cash reserves for fodder purchases in the current season. This is unlikely to occur again this season.
- Cereal hay: -$20 ($230 to $2800/t). Prices have eased this week
- Lucerne hay: -$15 ($350 to $380/t). Prices have eased this week
- Straw: +/-$20 ($130 to $160/t). Prices have eased this week.
- Pasture hay: +/-$0 ($160 to $240/t). Prices remain steady this week.
Southwest Victoria
- There was a slight increase in trading this week as prices ease to free up the market.
- Last year’s good quality cereal hay along with straw are generating the most interest predictably with lots of grass feed still available.
- Some silage has now been harvested in the past few weeks between showers. This has reportedly produced some average to poor quality silage.
- Hay harvest in still roughly a month away, well behind schedule and with more rainfall a strong possibility, unlikely to bring about the same quality as last year.
- Farmers are expecting that prices will ease dramatically when the new season fodder enters the market in around a month’s time.
- This will be mostly driven by lower quality and a lower demand.
- The oversupply predicted by many earlier in the year has now been dialled back with far less hay now expected to come from such ‘big crops’ due to ongoing rain.
- New season vetch is trading at $260/t; this has come back significantly.
- Cereal hay: -$30 ($200 to $220/t). Prices have eased this week. Most cereal hay being moved is of great quality and fetching between $215-$220/t.
- Lucerne hay: +/-$0 ($320 to $340/t). Prices remain steady this week.
- Straw: +/-$0 ($120 to $130/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($220 to $230/t).Prices remain steady this week however there are limited reports of trading.
Southeast South Australia
- Buyers continue to sit out of the market in the region resulting in no changes to hay prices this week.
- The reason for this reluctance to buy is due to an expectation that prices will be reduced when this seasons fodder supply hits the market.
- The price is likely to come back due to an oversupply of poorer quality feed putting pressure on the pricing scale.
- In a months time it is anticipated we are likely to see real changes in prices as the new season feed comes onto the market.
- Like many of the Southern regions, harvest has been delayed a number of weeks due to rain.
- Rain continues to cause issues for baling and has done real damage to a number of crops in the region.
- After a promising winter for cropping, the recent storms have now forced many growers to consider leaving crops for grain.
- There have been some who are suggesting the benchmark in terms of quality available in the new season will be last season’s feed. This will also most likely limit price movement at the top end.
- Cereal hay: +/-$0 ($220 to $240/t). Prices remain steady this week.
- Lucerne hay: +/-$0 (290-340/t). Prices remain steady this week.
- Straw: +/-$0 ($100 to $120/t). Prices were steady this week.
- Pasture hay: +/-$0 ($160 to 240/t) Prices were steady this week. Note that there is limited supply in the region at this time.
Central South Australia
- There were limited reports or hay trading this week as farmers focus on the harvest, still being interrupted by inclement weather.
- It is expected that good volumes of fodder will be produced in the region this season but the quality will be lacking.
- With export a major focus for this region, we are hearing comments that suggest finding export grade fodder may be difficult.
- Good availability of grass feed is slowing interest in hay.
- The likely drop in prices when new season feed hits the market has also prompted potential buyers to hold off.
- Despite this slow market, the area has one of the best supplies of stored premium cereal hay in the country.
- Cereal hay: $0 ($180 to 210/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($280 to 320/t). Prices remain steady this week.
- Straw: +/-$0 ($100 to $110/t). Prices remain steady this week.
- Pasture hay: N/A. No reported trading.
Southwest Western Australia
- The focus remains on the harvest in the West this week with little interest in hay trading.
- This resulted in no changes to hay prices this week.
- Recent frosts have done damage to some crops throughout the region, reducing the level of optimism for the season ahead.
- Comments suggest that with good curing conditions during harvest though, parts of the region are still likely to produce a lot of fodder.
- There will be good volumes of fodder made in the region this year due to such big crops form a healthy winter.
- As ongoing rainfall has persisted, achieving high quality may be difficult for growers.
- Cereal hay: +/-$0 ($240 to $280/t). Prices remain steady this week.
- Lucerne hay: +/-$0 (470 to 520). Prices remain steady.
- Straw: +/-$0 ($90 to $110/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($150 to $200/t). Prices remain steady this week.
Northwest Tasmania
- There were no changes in hay prices this week in the region as farmers purchased feed in either small bales or generally small volumes.
- Off the back of a bad dry year, there is a real shortage of past season’s feed restricting the possibility for hay trading and any price reduction.
- Low milk prices also continue to hamper the buyer’s ability to pay for feed.
- A number of dairy farmers are looking to grow more fodder on farm this season.
- Unwelcomed rainfall has returned this week and put real pressure on crops to the South.
- The season is now running several weeks behind schedule for most growers.
- Grain prices are reportedly very competitive at the present time with ASW Wheat being purchased at <$300/t landed.
- Cereal hay: +/-$0 ($230 to 270/t) Prices remain steady this week.
- Lucerne hay: +/-$0 ($330 to 350/t) Prices remain steady this week.
- Straw: +/-$0 ($150 to 170/t) Prices remain steady this week.
- Pasture hay: +/-$0 ($240 to 260/t) Prices remain steady this week.