Grain – Hay Report – 16 May 2013

International & National Summary – Grain:

• Rises in feedgrain prices across Australia this last week of $5-15 were not uncommon.
• While global grain markets finished the week largely unchanged, the lower A$ and continuing dry conditions for most of our east coast have driven the local grain market higher.
• The US corn crop planting is running a few weeks late due to wet weather, but may easily recover in the next week with drier conditions allowing farmers back in the field. Despite a few warning signs for the 2013 crop in parts of US, Russia, UK, and of course here in Australia, the USDA last week released its supply and demand forecasts for an all-time record wheat and corn crop. There are still about 100 days to go to see these crops in the bin, but if they do deliver, global grain prices are expected to fall in the second half of 2013.
• Some of South-Eastern Australia received rains in the last week (mainly SA and patchy in Vic), but the need for a decent autumn break is still required to see planting completed.
• The extremely dry inland conditions up north for the cattle industry has created very strong feedgrain demand and bulging cattle feedlots through NSW and Queensland. This demand is expected to persist through the balance of 2013 and is currently keeping local grain values over exporter bids.
• For the dairy regions, if you are close to a grain growing region (say Darling Downs, Central NSW, Northern and Western Victoria, SE south Australia) then you can expect current wheat prices in the $270-300/tonne range, whereas regions which “import” grains (North Coast NSW, Atherton Tableland, Bega Valley, Gippsland) are more likely to see grains in the $300-350 range to cover the freight costs ($350-400 for Tasmania).
• The range between buying and selling ideas will be within a larger range than usual until the weather gives us more certainty about what the season has in store. It is apparent that some growers are holding remaining grain (and there is less in farmers’ hands this year than usual) until they feel confident of the next season.
• The most important question for dairy farmers is not trying to pick the bottom, but to make a start on covering some of their forward grain needs if the quoted prices allow them to make a margin, taking into account the expected milk pricing that the industry awaits from mid 2013.

National Summary – Hay:

• In most of the key dairy regions across the country fodder is becoming very difficult to source of any type and quality.
• As buyers become more desperate to secure fodder for winter prices are still rising and keeping up with the price rises is proving a challenge. There is a lot of movement in the market, particularly in southern Australia.
• There are no reports of vetch trading under $300/t delivered with supplies all but exhausted. It is worth noting that dry sowing of vetch in the Mallee has commenced but rainfall has been very low through that region. This gives an indication that vetch crops planned for hay in 2013 may perform poorly and be low yielding. Therefore a vetch shortage into 2014 may be likely as well.
• In Southern Australia there has been some much needed rain, although it has been patchy, and Western Australia is having a great start to the season.
• The rain may lift confidence for growers and see a little more fodder on the market in some areas, however supplies are now very low and it is unlikely to impact the overall supply issue.
• It is important to ensure that both buyers and sellers look out for themselves by using written contracts for all fodder transactions, especially in such a tight market as we are currently seeing.
• Most hay in storage is under contract and while some lower grades of hay and straw are still available. Again buyers are advised to source their requirements now if possible.
• Cereal hay and vetch are in shortest supply in the eastern states. Reporting this week has indicated that vetch supplies will not hold on much longer and cereal hay is in very short supply.
• As fodder is moved greater distances freight is starting to have a big impact on price. This is reflected in this week’s price increases which are fairly even across different fodder types.
• Demand for hay from feedlots in QLD is starting to increase as Western QLD and areas in the Northern Territory have stayed extremely dry, with station owners opting to destock rather than freight hay.
• One point to note is there are some exceptional feed analysis results coming through this year, and even though sellers are remaining firm on price, what looks expensive on a per tonne basis might actually be reasonable value when costed on the value of ME and or protein.
• Supply of fodder is a particular concern for South East, SA, South West Victoria, Tasmania and Gippsland. In these areas freight is the biggest cost as local growers are struggling to meet the increasing demand for fodder.

This report has been commissioned by Dairy Australia to provide an independent and timely assessment of grain and hay markets in each dairying region. It should be remembered that actual prices may vary for quality or other reasons. All prices are quoted are exclusive of GST.

Notes: Prices are estimates based on delivery to dairy farms with allowance for freight, storage, and marketing costs, but exclusive of GST. Wheat prices are for the relevant stockfeed wheat available in a region (ASW, AGP, SFW1 or FED1) and F1 for barley.

Notes: Hay prices are delivered, GST exclusive based on shedded hay without weather damage, of good quality and colour. It should be noted there is a wide variation in quality for hay, so prices are indicative for a mid-range product.

• A dry start for May, with only spot showers.
• Mareeba May rainfall: 3mm (Ave: 7.2mm).
• YTD: 686.6mm (Ave: 715.9). Rainfall for this time last year was 720.2mm.
• Grain markets offshore are volatile based on concerns about delays to US corn planting.
• Wheat: $+20 ($370 to $380). Improving yield prospects for both in ground sorghum and wheat to be sown over next month.
• Barley: $ +10 ($418 to $428), new season barley supplies from CQ very limited. Too expensive in the ration compared to local corn/sorghum and wheat.
• Corn prices $ +10 ($373 to $383). Main corn crops coming off now. Local tablelands corn now available. Look out for any weather damaged / stained corn at a discount.
• Sorghum: $ +10 ($327 to $337) Prices firm for sorghum from old crop from Central Queensland as we await incoming CQ harvest prospects for May/June. Around $100 freight from CQ so if local sorghum available, consider a share of the freight savings.
• Choices for feed grains remains between local corn and sorghum. Any local sorghum that appears would be worth bidding for.
• Good feed from sown summer crops and opportunities for silage making.
• Very little new crop wheat sowings as yet in CQ and now getting late as harvest starts in late August in most years.

• It is still extremely dry in western parts of the state and increased demand for hay is starting to show. Station weaning programs are now underway and likely to cause an increase in demand and potentially increase prices slightly in the coming weeks.
• Pasture Hay – Steady ($255-275): Supplies of hay are lower than usual; however the quality is good as baling conditions have been favourable

• Rockhampton and eastern Darling Downs dry this week . Warwick an exception with 22 mm from a local storm.
• Sown winter crops not coming through without rain. Sorghum harvest progresses with late sown crops.
• Sunshine coastal strip Maleny 28 millimetres and good grass production still from paddocks.
• Toowoomba May rainfall: 27.6mm (Ave: 36mm).
• YTD: 781.8mm (Ave: 332.2mm), compared to 325.6mm this time last year.
• Strong price rises follow deteriorating prospects for winter grain crops.
• Wheat: $ +20 ($316 to $326). Through 2013, ASW wheat will be used for stockfeed, including dairy cows.
• Feed Barley: $ +10 ($308 to $318). Any barley available being bought by feedlots.
• Corn $ +20 ($320 to $330). Main corn crop harvest under way with some stained corn coming through and not making gritting grade.
• Sorghum: $ +23 ($288 to $298). Some new crop sprouted Downs sorghum available but quality is variable: our prices are for export sorghum quality. Check with nutritionist re sprouting, but SORX at $40-50 discount will be best buy if the quality is ok.
• Dry conditions on grain farms. Early seeding of winter crops is tentative.
• Late sown sorghum harvest continues as grain moisture comes down. Expected to continue till July, but not a big sorghum crop.
• Dairy farmers are now having to buy milling grade wheat for cows.
• Sorghum is viable alternative but best if heat treated.

• The supply of fodder is very low right throughout south east QLD and premium quality fodder of any variety is becoming hard to source locally and from supply regions such as Central West NSW.
• There are increased plantings of cereals (barley, oats and wheat) destined for hay, around Gatton in areas with irrigation, which will come on the market in August and provide some relief to fodder supplies.
• West of St George it is very dry with some drought declared regions not receiving decent rainfall since June 2012. Large numbers of cattle have been shipped east keeping feedlots busy. Feed lots are taking fodder, particularly Lucerne, and baling their own hay where possible.
• Cereal Hay – +$10 – ($300-$330): Cereal hay reserves are particularly low in supply and these stocks won’t be replenished until spring.
• Lucerne Hay – +$10- ($400+): Lucerne in large squares is hard to source right across the region putting pressure on supply and price. The horse markets are the most active buyers presently and paying $15-17/ bale for premium quality Lucerne where it is available.
• Straw – Steady: ($120-$150): Feedlots active buyers. The quality is good but there isn’t a lot of reserve stock available locally.
• Pasture – Steady: ($120-$150): Baling of summer active grasses is coming to an end.

• North coast had a solid rain this week of 30 to 40 millimetres.
• This will continue growth of mature summer paddock feed. Establishing winter ryegrass paddocks are doing well so far.
• Mid north coast had only 10 millimetres so may need fodder supplements soon.
• Lismore May rainfall total: 49.8mm (Ave: 74mm). March rainfall 131.2mm
• YTD: 779mm (Ave: 616.2mm), compared to 716.8 this time last year.
• Strong grain price rises follow deteriorating prospects for winter grain crops through Queensland and all of NSW
• Only grains trading are wheat and sorghum.
• SFW Wheat: $ +20 ($363 to $373). Sorghum much more competitive with shot sorghum now being available at discount of up to $40 a tonne.
• Feed Barley: $ +10 ($354 to $364). Barley is still priced at close to wheat and hence not attractive compared to wheat or coastal sorghum.
• Corn $ +20 ($340 to $350). Local corn crops coming into play now but prices up driven by factors from Downs harvest. Corn can be blended with other grains for cows or fed as the main ingredient.
• Sorghum: $ +25 ($303 to $313). Sorghum prices stronger based on higher global corn prices.
• Growing season for summer feed extended in both regions, but grain very expensive now.
• Best option to use any coastal grain that is stripped, which means personal contact with local grain growers.
• Feed still growing well, with Kikuyu green and fresh.

• Trading is slow at present but there also isn’t a lot of fodder in reserve which will cause a shortage coming into winter, particularly of good quality hay and lucerne.
• Good paddock feed availability is putting the handbrake on demand, although there is consistent enquiry from the cattle market as they start weaning and also from the hobby farm market. Prices are remaining steady and we don’t anticipate much movement in the short term.
• Cereal Hay – +$30 – ($260-$300): There is very little available locally.
• Lucerne Hay – +$25 – ($300-$350): Very little quality shedded Lucerne available locally, however some green chop is being traded. Supply will be tight during the peak season this year. Supply is particularly tight for small squares which are trading at $12/bale.
• Pasture Hay – Steady – ($150-$170): Pasture hay in round bales has been in production over the last few weeks. There is some enquiry from livestock buyers for these markets. The quality and supply are low; therefore if we see a cooler winter it will quickly become hard to source pasture hay locally.

• Just 8mm of rain this week at Forbes. Other central west areas received even less.
• Dry sowings now the pattern.
• After a start to seeding in mid April, many farmers stopped seeding till they got another rain.
• So when rain comes canola will germinate and growers can move straight to seeding wheat.
• Forbes May rainfall: 13.6mm (Ave: 31mm). March rainfall was 79.8mm.
• YTD: 176.2mm (Ave: 177mm), compared to 365.8 this time last year.
• Stiff price rises again this week. Domestic feed grain prices are above exporter bids.
• SFW Wheat: $ +10 ($277 to $287). Only milling grades now available.
• F1 Barley: $ +20 ($246 to $256). Barley more available in central west than norhern areas. But now tightly held.
• Corn $ +40 ($360 to $370). New crop supplies now coming on stream.
• Sorghum $ +12 ($341 to $351). Sorghum prices less competitive with other feed grains out on the central plains.
• Grain prices up again. Concerns for incoming grain season.

• There is very strong demand for fodder through the central west particularly for lucerne. With declining paddock feed locally and interest from as far away as South West Victoria and South East QLD there is a strong indication that a fodder shortage is imminent in the central west.
• Cereal hay – Steady ($250-$300): There is no stock available locally in large squares. Cereal hay in small squares is in very short supply but trading at $8/bale.
• Lucerne –+$30 – ($330-$360): Competition for lucerne hay is increasing between the chaff and livestock buyers as supplies start to run low. Good quality small square bales are steady at around $10/bale.
• Straw – Steady ($115-$135): The Central West is not traditionally a big area for straw and there is not a huge supply.
• Pasture hay – Steady – ($145-$155) – Low grade pasture hay is being snapped up by the livestock market for cheap forage where it is available. Supply is very limited as it is not a regular market for the region. There is a consistent trade of high quality clover hay to the horse industry around the Orange region paying around $8/bale for small squares

• No rain in the last week for Bega.
• Bega May rainfall total: 1.2mm (Ave: 50mm). March rainfall 17.2mm.
• YTD: 195.4mm (Ave: 318mm), compared to 563.6mm this time last year.
• Very strong feed grain prices in face of concerns re winter planting of crops in NSW, plus volatile offshore markets.
• SFW Wheat $ +10 ($315 to $325). Little feed grade wheat on offer as ASW and APW become the default supply for wheat, where milling competition comes into play, both at Port Kembla and Sydney markets.
• Feed barley $ +10 ($276 to $286), a wide discount to wheat, but supplies dwindling in southern NSW, and competition from Victoria
• Triticale $ +5 ($304 to $314). Triticale is currently trading on par with wheat with some included in rations coming from Victoria.
• Oats: $ +10 ($285 to $295). Very strong demand for sheep feeding on Southern Tablelands and now too expensive for use in dairy rations.
• Conditions are very dry in both the southern tablelands and southern slopes.
• Barley from Temora and above is now moving to southern markets as Victorian barley availability tightens.
• Cows still strip grazing summer feed corn crops, some silage making for winter use.
• Hill paddocks making little growth but still green unlike the dry and dusty tablelands conditions

• Conditions are tough through the Bega valley. It is very dry and a lot of fodder is being sourced from outside the region where supply allows. Cereal hay is in highest demand but is becoming very difficult to source.
• There is no excess silage available on farm.
• After experiencing the first frost for the year in the last week, soil temperatures are getting low and pasture growth resulting from any rain will be inhibited.
• Suppliers on the Riverina are also struggling with dry conditions and very tight fodder supplies. Prices are starting to rise now due to competition locally and from other regions.
• Cereal Hay – +$40 ($260- $300): Prices have increased again and supply tightens across the region. Buyers are looking to source lower grade cereal hay to reduce costs; however it is extremely hard to find.
• Lucerne –+$50 -($350-$400): Another significant price rise in lucerne as buyers search further afield to source product. In supplying regions demand is rapidly diminishing and there is increasing competition from the livestock sector due to the dry conditions in nearby areas away from the coast.
• Straw – Steady ($140-180): There wasn’t a lot of straw made in the supplying regions and now there is strong competition from other sectors. High prices are reflecting the lack of supply.

• Wimmera, Mallee and GV falls were typically less than 10mm. This was not enough to guarantee a germination, nor emergence of all crops.
• Hence conditions are supporting high wheat and barley prices.
• Local cropping activities will continue, but heavy rains to wet the subsoil have not happened.
• Tatura May rainfall: 13mm (Ave: 45mm). March rainfall 35.6mm.
• YTD: 99.1mm (Ave: 183mm), compared to 291.6mm this time last year.
• SFW feed Wheat: $ +0 ($278 to $288).
• F1 Barley: $ +0 ($254 to $264). Barley currently compares with wheat in the ration.
• Triticale: $ +0 ($260 to $270) Pig and poultry producers were buying triticale at parity with wheat. Good rains in Victoria’s north east has brought out more triticale sellers.
• Feed Oats: $ +0 ($222 to $232) Sheep and horse feed only at these prices
• Sheep and beef producers in market for both grain oats and fodder.
• As dairy cows need more energy to cope with colder conditions, farmers would like to secure more wheat, but are baulking at the current prices.
• Don’t expect wheat prices to come down till all Victorian grain areas have had 25 millimetres

• The last two weeks have seen further tightening of supply of all fodder types in the region. As a result prices are increasing again. Most hay and straw in storage is committed and we are already seeing a shortage of all fodder types throughout most regions of the country.
• Rain now is unlikely to have an immediate impact on hay prices but may result in some more fodder coming onto the market as growers are keeping reserves for their own use.
• Cereal hay – +$40-($250-$300) –Cereal hay is very hard to find. Active purchasing early by the exporters, lower yields and a lack of carry over stock from 2011 have impacted on supply. Where stock is available growers are getting so much enquiry that prices are increasing rapidly. Buyers are searching for cheaper, lower grade fodder but it is scarcely available.
• Lucerne hay – +$40 – ($280-$300+) – Supply is becoming very tight there are no reports of uncommitted lucerne in the region. Supply is limited right across the country and the further afield buyers have to go to source product the more expensive the freight component. It is becoming difficult to find lucerne delivered under $300/t. Small squares are also very hard to source and are trading up to $14/bale on farm.
• Straw – +$15 – ($110-$120) – There is very limited straw available that isn’t under contract and prices are now sitting around $100/t on farm.
• Vetch – +$65 – ($300+) – There are no reports of vetch trading under $300/t delivered with supplies all but exhausted. It is worth noting that dry sowing of vetch in the Mallee has commenced but rainfall has been very low through that region so far. This gives an early indication that vetch crops planned for hay in 2013 may perform poorly and be low yielding. Therefore a vetch shortage into 2014 may be likely.

• Another dry week, a few showers of less than 5mm. Grain demand rising rapidly for feeding livestock.
• Pastures making slow progress.
• 10mm this week in the northern Wimmera and Mallee was not enough to sow with any confidence.
• There is still a high risk of low yields or worse, therefore growers in NW Victoria and country merchants are slow sellers of wheat and barley.
• Sale May rainfall: 3mm (Ave: 52mm). March rainfall 36.0mm (Ave: 49.3mm).
• YTD: 152.2mm (Ave: 238mm), compared to 254.8 this time last year.
• SFW Wheat: $ +12 ($317 to $327). Main grain sources remain the Riverina, southern Wimmera and North East. Current relative pricing suggests an advantage to barley vs wheat, but many prefer to feed wheat going into winter for energy.
• Barley: $ +10 ($298 to $308). Most Gippsland dairy farmers have been on wheat for long time.
• But cost pressures are encouraging some mixing of barley in home mixes.
• Triticale: $ +5 ($298 to $308). A little more triticale on offer following rains in NE Vic.
• Feed Oats: $ +5 ($233 to $243) Stronger demand for sheep feeding and for the horse trade.
• Much of the Victorian wheat was sold to major traders last harvest. Farmer and merchant stocks are lower than normal and are holding stocks tightly still.
• Dry conditions in northern Victoria have suddenly become more serious.

• Fodder of all types is being shipped into the region with demand remaining strong; however the supply is very low in the key supplying regions and is a growing concern for traders and buyers.
• It is unlikely pressure on supply will ease now before spring as parts of the region are still waiting for a decent rainfall to boost pasture growth.
• Cereal Hay – +$20 – ($300-$320) – Whilst buyers have been able to access some small supplies of cereal hay supply is becoming very tight. There is very little available now right across southern Australia. Any cereal hay of good quality is unlikely to get delivered to Gippsland for less than $300/t.
• Lucerne Hay – Steady – ($300-$350) – Local suppliers have had most of their final cut bought straight behind the baler. The usual supply regions are also low in stock. Supply is very tight and unlikely to last the winter.
• Vetch – Steady – ($300+) – There is very little available.
• Straw – ($200-$220) – Straw is now being brought in from other parts of the state. Straw is now trading at $100/t on farm in most regions; freight back to Gippsland is adding significant cost for buyers.
• Pasture – +$30 – ($190-$210) –Very short supply of any grade pasture hay across Southern Australia, including the usual local supply of round bale pasture which has been cleaned out.

• Finally some rain! Most dairy areas received at least 20mm. Colac 19 millimetres, Warrnambool 48mm.
• New dryland feed will come away now, but will take three weeks to get to cow grazing height .
• Typical Wimmera and Mallee weekly falls were less than 10 mms – not enough to guarantee the planting for winter crops.
• These low falls are supporting high wheat prices
• Port Fairy May rainfall: 129.2mm (Ave: 64mm). March rainfall 24.6mm (Ave: 38.5).
• YTD: 215.2mm (Ave: 223mm), compared to 212.2 this time last year.
• SFW1 Wheat: $ +15 ($283 to $293). Wheat prices up on the back of firmer global prices, lower A$ and dry grain regions.
• Feed Barley: $ +5 ($258 to $268). Barley prices firmer this week. The discount to wheat is $15 a tonne, but more wheat will come into play as winter approaches.
• Triticale prices $ +8 ( $275 to $285). Triticale is in demand, but only at a discount to wheat.
• Feed oat $ +5 ( $226 to $236). Many grazing areas around Hamilton and Mortlake still wanting oats for paddock feeding of sheep
• Not a lot of grower stored grain coming to market – they are waiting on a break to the season

• Hay traders and buyers are under pressure to find fodder, further compounded by low supply across most of the country.
• The upside is the region has finally received a decent rainfall, whilst it won’t alleviate the immediate demand for fodder it may see some more fodder onto the market in the coming weeks as growers gain confidence in the coming season.
• Cereal – +$15- ($250-$300): It is extremely difficult to source cereal hay at the moment and most hay in storage is under contract. Prices increases are indicative of the very tight supply situation.
• Lucerne – Steady – ($300-$330): The usual suppliers of lucerne from North Central Victoria and South East South Australia are very low or completely out of stock. Prices are quickly rising as buyers attempt to secure high protein feed. The horse industry is still active closer to the regional centres and small squares are trading at $12/bale or more.
• Straw – Steady – ($120-$150): Straw is starting to gain a lot interest from buyers. Supplies locally were thought to be quite good but with stocks moving now and a clearer focus on the level of demand it appears there will be a short supply. Some growers are hanging onto excess straw for their own use on farm as concern grows for a drought through winter.
• Pasture hay –Steady – ($220 – $260): Pasture hay is in short supply and very difficult to source across the state.

• Finally an autumn break! A heavy set of rains came through this region over three days, 38mm at Mt Gambier.
• This rain changes the season and strong feed will now come from dryland pasture paddocks.
• Expect new feed to take three weeks to reach grazing height, after renewed growth following earlier germination.
• Mount Gambier May rainfall: 44.2mm (Ave: 71mm). March rainfall 23.4mm (Ave: 35.3mm).
• YTD: 135.8mm (Ave: 214mm), compared to 152mm this time last year.
• Wheat $ +8 ($283 to $293). Wheat prices higher this week from higher global prices, lower A$ and dry grain regions.
• Feed barley $ +0 ($250 to $260), at a $30 discount to wheat, barley is again competitive with wheat, but wheat will be in demand as winter approaches.
• Triticale $ +10 ($280 to $290), needs to be cheaper than wheat to have a place. Mallee origin triticale is priced higher than our table prices because of higher grain protein.
• Oat prices $ +0 ($221 to $231) more interest in oats from sheep and wool producers. Oats too expensive for its feed value to cattle.
• Victorian Malle-Wimmera new season crop prospects still poor and supporting feed grains’ market

• Supply locally and throughout the main supplying regions is very tight and prices are creeping up. With no relief for fodder supplies now until spring it is unlikely prices will ease.
• Cereal –+$65- ($250-$300): Cereal hay is becoming harder to source. Buyers are actively seeking lower grade hay; however it is in very low supply. Most stock seen in sheds and storage is under contract.
• Lucerne – +$15 – ($300-$330): Supply is becoming very low through the Naracoorte, Keith regions, with prices firm around $300/t. Growers with excess Lucerne are considering their own needs for winter now before trading hay given the very short supply available and the dry conditions.
• Straw – Steady ($90-$120): Trading has picked up with more interest in lower grade cheaper fodder. There is little in excess throughout SA.
• Pasture – +$15 ($190-210): Pasture has been snapped up early by the livestock buyers. Pasture hay is becoming harder to source as the dry conditions have increased demand for both pasture hay and silage.

• A good rain through South Australia this week.
• Better for main South Australian grain areas than for Victorian Mallee and Wimmera .
• Murraybridge May rainfall: 19mm (Ave: 35mm).
• YTD: 75mm (Ave: 117mm).
• Wheat $ +3 ($273 to $283). Wheat prices firmer after global volatility, lower A$ and dry start for Vic-NSW
• Feed barley $ -4 ($236 to $246), The discount to wheat is making barley a more attractive feeding option for cows than wheat, but wheat demand will rise for winter feeding.
• Triticale $ -5 ( $265 to $275). Triticale sellers have come forward noting feed wheat prices in SA are over exporter bids
• Feed oats $ -5 ($223 to $233). Oat prices may ease in coming weeks as paddock feed increases after the rains.
• The instability of grain prices over the last few weeks has both buyers and sellers at quite a range apart at moment.
• May take some time as local growers busy themselves with cropping activities.

• There is some cereal hay available but demand is strong and coming from as far away as Broken Hill, NT and NSW. Graziers and dairies are the most active buyers.
• Prices are trending upward again in this region with increases of up to $40/t on average for cereal hay and $30/t for straw, a clear indication that supply is very tight.
• Cereal Hay –+$40 – ($250-$300) – Supply is tight with most local growers already sold out and this is reflected in this week’s price rise. Where cereal hay is available, quality is very high.
• Lucerne –+$25 – ($300+) – Stocks are being sourced from further afield as there is very little around central SA, a trend seen in most regions of the country. Low supply is due to limited acreages and poor results from dryland Lucerne in SA this year.
• Straw – +$30 – ($120-$130) – Any straw on farm is likely to be under contract but demand from the domestic market is fairly quiet at this stage.
• Vetch – +$35 ($300+) – Where available growers are asking top dollar for good quality vetch hay, there is very little now available and there is no indication of vetch being delivered for less than $300/t.

• Bunbury 23 mm this week and Harvey 59 mm; now probably set for wet soils through winter.
• Northern grain areas have had an excellent start to the crop growing season.
• Great Southern also a good start with sowings yet to be completed, but yield prospects good..
• Central and eastern wheat belts only received 10 millimetres of rain this week.
• They will continue sowing but are unlikely to sell any more old season grain stocks till new season prospects improve.
• Bunbury May rainfall: 72mm (Ave: 92mm). March rainfall 37.4mm (Ave: 14.2mm).
• YTD: 134.8mm (Ave: 161mm), compared to 127.4mm this time last year.
• Wheat: $ +0($303 to $313).
• Feed barley $ +0 ($290 to $300).
• Triticale $ +0 ($290 to $300). Triticale is competitive with feed wheat at these prices. Dairy farmers are seeking to buy triticale at a discount to wheat, but not always available.
• Oats +0 ($215 to $225). The current demand is from sheep producers for their winter feeding needs. At this discount to wheat, oats must have some place in domestic livestock feeding (probably as minor inclusions in home mixes).
• After big price rises in late April, grain market in WA was steady last week.
• Don’t be surprised if the only wheat on offer to you at times over winter is milling grade wheat
• With the small harvest last year not much tonnage is still in grower hands.
• More selling activity perhaps, when growers are finished seeding .
• Growers seem to be looking for prices close to what they were back at harvest (say $320), but the market appears unlikely to recover to that level given the global crop outlook for second half 2013.

• WA seems to be one of the few locations nationally with decent fodder reserves, particularly of cereal hay. However a lot of the fodder in storage is committed. Lucerne hay is in short supply as indicated by a price increase this week, coinciding with production ceasing coming into winter.
• The season is looking promising so far with good rain favouring growers, who are getting ready to sow long winter varieties in mid to late May.
• Cereal hay – +$5 ($180-$250): There has been an oversupply of high grade new season hay and could be some carry over. There is some competition for the lower grade hay which is pushing the price up.
• Lucerne – Steady ($400-$500) – Demand for Lucerne has increased, supply is running low and chaff makers are active buyers of premium quality hay. The main domestic activity is from local horse markets and prices are peaking at around $470/t on farm.
• Straw – Steady ($90-$120): There is some lower grade straw around that didn’t make export grade after being rained on before baling.
• Pasture – Steady ($110 – $130): There seems to be good stocks of pasture hay available to trade.

• Big dump this week of 60 to 80 mm on north west coast.
• Farmers who had already spread fertilizer now happy with themselves.
• This rain was season defining. Wet conditions, and now rubber boots mandatory!
• Smithton May rainfall: 55mm (Ave: 79mm). March rainfall 57.2mm (Ave: 50.4mm).
• YTD: 209mm (Ave: 265mm), compared to 315.6mm this time last year.
• Wheat $ +10 ($385 to $395). Red wheats being used, both from local and mainland sources.
• Feed barley $ + 0 ($360 to $370). The price of feed barley is competitive versus wheat, but expect to see more wheat used as winter arrives
• Triticale prices $ +5 ($361 to $371). Mainland triticale is on offer. To be useful it must be cheaper than wheat, and may see lower prices after rains in NE Vic
• Oats prices $ +5 ($300 to $310). Imported oats are going to horses and chicken meat rations, but market stronger as autumn sheep demand kicks in.
• Wheat prices have escalated on dry conditions through main Victorian grain areas. Rain this week through Victorian Wimmera and Mallee not enough to ensure crops sown will emerge.
• Hence pattern of domestic grain prices above export values likely to continue till a better rain is received in north west Victoria. Low stocks held on farm and fairly tightly held.

• There is a definite shortage of supply in Tasmania leading into winter. Ryegrass straw is available and some dairies are using this low cost product for roughage.
• Silage stocks on farm are low and there is some demand for trading silage. It is recommended that trading be done on a $/t DM basis as opposed to per bale.
• Cereal Hay – Steady – ($205-$225): Stocks are very low due to lack of production for fodder and high competition in the grain sector.
• Lucerne – +$25 – ($300-$350): Lucerne supplies are limited; silage in particular is in high demand but not easy to source.
• Straw – Steady – ($135-$145): Given the dry conditions the quality of straw is high and is starting to move now, with demand at this time of year coming from mainland mushroom growers.
• Pasture Hay – Steady – ($160-$200): The supply of pasture hay is just not available this year, especially good quality pasture hay.