National Summary
- Domestic fodder prices have begun to firm around Australia in the last week of summer. Noticeable price firms are in the Central West of New South Wales and Darling Downs in Queensland. There are predicted imminent price firms in Central South Australia and Gippsland regions with other areas trading slowly and quietly.
- Some patchy rain and hot summer heat is drying up the land in areas around the country, however new season hay and weatherproofed carryover from 2016 is dampening demand. Goulbourn and Murray Valley in northern Victoria and Bega in southern New South Wales appear to be accommodating demand from Queensland and New South Wales. Reportedly, the western district of Victoria and south east South Australia should be expecting demand from the west and north of central South Australia. Supply of medics and vetch are reportedly limited in central South Australia and in demand as sheep commodity prices are healthy.
- The weather report is quite varied and unpredictable across Australia. Generally, the temperate, southern regions of Australia have experienced tropical weather of high humidity and moisture. Conversely, the northern tropics have experienced a dry summer however heavy rainfall and storms have been present in the last week and are forecasted. Spontaneous summer rains are impacting on haymaking activities and quality throughout the country.
- There appears to be little straw available this year as grain yields are down by 40%. It is expected that demand will exceed supply.
- The export industry is beginning to assess new season fodder for shipment overseas. Reports of very high quality product is coming out of Western Australia, however after some persistent late spring and early summer rainfall across Australia, there is some weather damaged hay around.
- Demand and trading have taken a turn this week as prices firm and pastures dry out.
Northern Australia – Summary
- Demand for product in northern Queensland is low, as persistent rainfall coupled with favourable growing temperatures has encouraged on farm grazing. Conversely demand is firming in the south of Queensland as supply is very limited.
- Australia’s cottonseed industry is expected to produce the largest crop in the world, which may impact on domestic fodder consumption. Cottonseed is a highly nutritious feed source, with high protein, energy and roughage content. It will be interesting to see the impact of low cottonseed prices on the hay market.
- Securing long term, reliable supplies of quality hay may well be an issue for the north as the year progresses with demand expected to be greater than supply.
- We suggest caution when purchasing fodder at the moment, particularly protein hay, as there continues to be a great deal of variability in what’s being traded.
Southern Australia – Summary
- The region is once again expected to produce more than enough hay this season and will remain a strong source of supply to other regions in need throughout the country; this is being complemented by a good silage year.
- There is also still quite a lot of carryover from 2016 and sheds are full.
- Demand is increasing in Central South Australia and East Gippsland and should continue for some time.
- Hay trading is mostly dormant in the south with pockets of enquiry, largely due to late spring and summer rainfall.
- There is some silage production and feeding in the southern region, particularly Bega and in West Gippsland.
- Due to high levels of persistent rainfall in spring, we recommend obtaining a mould and yeast test, a feed test, and using a trusted a supplier.
Western Australia – Summary
- There remains reasonable good supply of carryover stocks of low/medium grade hay in the system but care should be exercised when buying this.
- Demand for carryover hay from the northern WA sheep industry is strong and should continue after a dry winter.
- The export industry continues to dominate the WA market and is a solid indicator on pricing. Exporters continue to seek out quality hay and as a result, will set the price in the market for quality hay.
Regional Commentary
Atherton Tablelands
- The Tablelands received 14-15mm in parts earlier this week, with heavy rainfall and storms forecasted for the weekend. Rainfall forecasts have been temperamental lately impacting on hay production.
- Local demand remains steady. Some large squares have been moving to Longreach area, in central Queensland. It is expected that demand will remain steady for near future and may firm, as hay sheds appear to be emptying.
- Prices remain steady for this week.
- Pasture hay: +/-$0 ($200 to $350/t). Prices remain steady this week
- Note: Hay in the Atherton Tablelands is traditionally priced at $/bale, so it is important to check bale weights for conversion.
Darling Downs
- There has been some patchy rain in the Downs this week and more forecasted. This comes as a relief after a fairly dry summer but it is reported this will ease demand on the fodder market.
- Cereal, straw and lucerne prices have firmed which reflects increasing demand for fodder.
- Reportedly, Australia has grown the biggest crop of cottonseed in the world this year reducing local prices. Cottonseed is a highly valued animal feed, particularly in feedlots, for it’s high energy, protein and roughage content. This may impact on local demand for hay and straw.
- New season fodder is being sought from the Victoria and South Australia, as there is a limited local supply.
- Demand will be much greater than supply this year.
- Cereal hay: +$20 ($300 to $340/t). Prices have firmed this week.
- Lucerne hay: +$65 ($380 to $450/t). Prices have firmed this week.
- Straw: +$10 ($200 to $250/t). Prices have firmed this week.
North Coast NSW
- Parts of North Coast NSW received more patchy rainfall this week and are expecting more this weekend.
- Rhodes grass, sorghum and millet silage is currently being baled now, which is business as usual.
- Rainfall has kept demand quiet. There is little enquiry reported and no changes to prices.
- Cereal hay: +/-$0 ($280 to $300/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($350 to $400/t). Prices remain steady this week.
- Straw: +/-$0 ($180 to $240/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($200 to $250/t). Prices remain steady this week.
Central West NSW
- There has been a shift in the market in Central West NSW this week with sources informing of ‘enormous demand’ coming from Queensland and the Hunter Valley.
- Prices for cereals, lucerne and straw have firmed as a response to demand and limited supply in the region.
- The focus on farm is irrigating lucerne, which is predicted to be on its 5th cut for the season. Quality is second-grade this year as average summer rainfall prevented cutting at the optimum stage, but yields should be adequate.
- The weather is hot and dry however a storm is predicted for the weekend.
- There is very little straw available in the region and is generally of poor quality with rain damage after the grain harvest.
- Cereal hay: +$15 ($200 to $220/t). Prices have firmed this week.
- Lucerne hay: +$50 ($50 to $400/t). Prices have firmed this week.
- Straw: +$5 ($80 to $100/t). Prices have firmed this week.
- Pasture hay: +/-$0 ($150 to 200/t). Prices remain steady this week.
Bega Valley
- Local demand for hay is low at the moment as no one is feeding out hay. Sources are expecting demand to pick up in the next month
- There is some external demand for straw coming from Wellington and Dubbo areas.
- There have been no price changes noted this week.
- Cereal hay: +/-$0 ($220 to $250/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($320 to $350/t). Prices remain steady this week.
- Straw: +/-$0 ($120 to $150/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($140 to $210/t). Prices remain steady this week.
Goulburn/Murray Valley
- Local trade is reportedly quiet in this region. There are still reports of old season hay being sent up north to NSW and Qld feedlots and cattle stations.
- There is also some vetch moving to dairies in the Western District of Victoria, which is selling for $180-250 per tonne before freight.
- Weather is pretty typical in the Goulbourn and Murray Valley’s with high temperatures and dry heat.
- There are no price changes noted this week.
- Cereal hay: +/-$0 ($80 to $160/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($230 to $300/t). Prices remain steady this week.
- Straw: +/-$0 ($90 to $100/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($150 to180/t). Prices remain steady this week.
Gippsland
- East Gippsland appears to be dictating demand and receiving daily truckloads of hay from the West. Reports have informed that round bale grass hay is moving to beef and dairy farms in the direction of Maffra, Sale and Bairnsdale.
- There are also reports of some silage, lucerne and vetch moving from the West for autumn calving dairies and those beginning to stock up for winter.
- The land has really started to dry out in the West now however this hasn’t appeared to impact on demand yet, with carryover still in sheds.
- Cereal hay prices have firmed this week.
- Cereal hay: +$10 ($140 to $230/t). Prices have firmed this week.
- Lucerne hay: +/-$0 ($290 to $320/t). Prices remain steady this week.
- Straw: +/-$0 ($130 to $160/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($120 to $240/t). Prices remain steady this week.
Southwest Victoria
- Demand for fodder is still quite slow at the moment and is expected to increase shortly. Enquiry is steady and regular contracts are being fulfilled.
- There is some vetch enquiry in the region which is selling for $245-$265 (+GST) delivered.
- Good quality new season hay ranges from $140-$190, although there is a lot of carryover stock selling for less.
- Cereal hay: +/-$0 ($110 to $190/t). Prices remain steady this week.
- Lucerne hay: +/-$0($250 to $290/t). Prices remain steady this week.
- Straw: +/-$0 ($90 to $130/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($110 to $160/t). Prices remain steady this week.
Southeast South Australia
- There is still a lot of low-grade carryover in Southeast Australia, which has, and will continue to hamper local demand for feed.
- Land is beginning to dry out though, so it is expected that demand will increase – it’s too early to tell whether this will be enough to get through carryover.
- New season vetch is available at $200/t on farm. Limited old-season vetch is available for $180-$190/t.
- No price changes are noted this week.
- Cereal hay: +/-$0 ($60 to $140/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($160 to $200/t). Prices remain steady this week.
- Straw: +/-$0 ($60 to $90/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($70 to 150/t). Prices remain steady this week.
Central South Australia
- Enquiry and pricing of hay in is firming in central South Australia due to decreasing supply of feed and higher commodity priced of sheep.
- Domestic trading is still fairly steady with plenty of carryover from 2016 and is beginning to pick up as local and interstate demand increases.
- There are reports of a pending change in market demand due to shortage of vetch and medic hay, particularly in the north and west of Adelaide.
- Cereal hay: +$15 ($90 to 170/t). Prices have firmed this week.
- Lucerne hay: +/-$0 ($250 to 300/t). Prices remain steady this week.
- Straw: +/$5 ($80 to $120/t). Prices have firmed this week.
Southwest Western Australia
- Demand in the Southwest is reportedly fairly steady as expected for this time of year, with small amounts of low-grade carryover and new season weather damaged hay moving to sheep farmers who lost forage from the recent cyclone.
- There is little enquiry from cattle farmers reported this week too.
- Export demand for good quality fodder is steady. Quality is high this year with minor weather damage.
- There is no price change noted this week.
- Cereal hay: +/-$0 ($100 to $250/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($450 to $490). Prices remain steady this week.
- Straw: +/-$0 ($80 to 110/t) Prices remain steady this week.
- Pasture hay: +/-$0 ($80 to $200/t). Prices remain steady this week.
- It is worth noting that what is classified as pasture hay in WA can vary greatly from meadow hay to sewn medics, citronella and clovers. Medics and clovers expect to get higher prices than meadow grass.
Northwest Tasmania
- Tasmania is starting to dry out however there have been a few smaller rain events in the past two weeks that have subdued demand for fodder.
- The straw harvest in Tasmania should be close to, if not already complete now. There is increasing enquiry for straw and demand is consistent from mushroom and composting farms in the north and south.
- There has been no change in price this week, but prices are expected to firm in the next month.
- Cereal hay: +/-$0 ($160 to 220/t) Prices remain steady this week.
- Lucerne hay: +/-$0 ($220 to 300/t) Prices remain steady this week.
- Straw: +/-$0 ($100 to 140/t) Prices remain steady this week.
- Pasture hay: +/-$0 ($140 to 190/t) Prices remain steady this week.