Hay Report – 1 June 2018

National Summary

• Rain has pushed through parts of the south-east of Australia and winter is beginning to settle in across the country.
• Cooler temperatures are being reported right across the east and south of Australia, with rainfall reports in WA, SA, Tas, VIC and NSW. Most regions are still fairly dry with the exception of small pockets in the south-east.
• The NSW Government has announced transport grants for farmers severely impacted by drought this week, after farmers are forced to feed stock at high prices or sell off. There was some rain passing through the region but follow-up events are needed.
• It has been a late start to the planting season with many farmers hesitant to seed in the past month, without forecasted breaks or follow up rain. There have also been reports of staggered growth and mouldy seed, without substantial follow-up rain to encourage germination in Victoria.
• It will be interesting to see what the future market holds: farmers expected carryover stockpiles from 2016 to maintain over the winter and chose to plant less accordingly. However the market has since turned and sheds appear to be emptying very quickly.
• After weeks of rising enquiry, demand appears to have hit a peak in central New South Wales and is plateauing. Demand has also softened in southern Queensland this week in response to high grain prices. This may be due to farmers selling off stock or choosing not to buy this week.
• There is a lot of transported around the country of varying quality. We caution buyers and recommend feed-testing and viewing fodder before purchasing to be sure of quality of feed.

National Commentary

Northern Australia – Summary

• Straw and lucerne is becoming difficult to source however sorghum stubble might be a future option for purchase in this area.
• Alternative fodder supplies such as almond hulls and cottonseed is impacting on the fodder market at present.
• 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.

Southern Australia – Summary

• Rainfall has begun to moisten soils but much more is needed.
• New season hay is selling quickly and carryover stocks from 2016 is moving across Victoria, New South Wales, Tasmania and South Australia.
• Demand is exceeding supply in Central West New South Wales and predicted in Northern Victoria, Tasmania and South Australia.
• Protein enquiry is strong and expected to remain. Lucerne, vetch and straw supply is beginning to deplete.
• 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

• Local domestic demand is very strong and it’s reportedly difficult to source supplies. The export market is supporting this strong domestic demand. 
• Demand for carryover hay from the northern WA sheep and beef industries is strong and should continue.
• 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

• Weather has mostly been sunny and fine for the tablelands this week with a few a few days of less than 1mm of rain.
• There continues to be a few more enquiries for hay each week, however demand is not overly strong – just steady.
• There is no price change noted this week.
• Pasture hay: +/-$0 ($250 to $300/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

• Some rain has passed through Toowoomba this week but not enough to interrupt farmers. Weather has been cool and frosts are beginning to emerge.
• There is some demand for sorghum stubble into the market however growers are hesitant to supply due to loss of carbon in the soil.
• There has not been much fodder planted yet, as planting is mostly determined by rainfall in this region. Farmers are waiting on substantial rainfall for hay planting. There is reportedly not much roughage such as barley and wheat straw in the market and there have been reports of a large order of almond hulls from a local feedlot.
• Demand has softened slightly in this region this week. Grain prices have soared and feedlots have pulled back on buying. There is slightly stronger demand in drier areas such as Warwick. Farmers are securing hay where possible. There is very limited supply of cereal lucerne and straw in this region.
• There is some pasture hay selling for $250-300 per tonne delivered locally.
• Cereal prices have firmed only slightly.
• Cereal hay: +/-$10 ($340 to $380/t). Prices have firmed this week.
• Lucerne hay: +/-$0 ($400 to $540/t). Prices remain steady this week.
• Straw: +/-$0 ($250 to $320/t). Prices remain steady this week.

North Coast NSW

• The Northern Rivers have had some rainfall with reports of some farms getting an unexpected 16mm this week. The western areas near Tenterfield have begun to get frosts.
• Farmers are busy cutting and baling pasture before the frosts hit. They are also cutting rice straw. Some farmers have started to plant oats.
• External demand is fairly strong and has picked up in the last fortnight. Local demand is not overly strong, but farmers are looking to secure hay for the winter.
• Vetch is selling for $400-450 per tonne delivered. Prices of lucerne and straw have firmed.
• Cereal hay: +/-$0 ($280 to $300/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($400 to $450/t). Prices remain steady this week.
• Straw: +/-$0 ($250 to $300/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($300 to $350/t). Prices remain steady this week.

Central West NSW

• The Central West of New South Wales has received between 5-12mm of rain this week, which has is a relief for farmers. There is not much follow up rain forecasted until late next week, and the land is still very dry.
• The Government has announced transport grants to support farmers affected by drought. Farmers may decide to change their crops due to inadequate summer and autumn rain.
• Rainfall is too infrequent and patchy for a consensus on planting strategy in this region.
• There has mostly been grazing crops sewn this month but not for grain or hay. Not much canola has been planted thus far despite the planting window drawing to a close. Reportedly, there might be a frantic planting of barley late in the season.
• Demand has hit a peak and is plateauing for this region. Lucerne is hard to source, as it’s already committed.
• Farmers have been offloading stock. Hay is being sourced from Victoria and South Australia where available and low-grade carryover from 2016 is moving. Export reserves are being acquired.    
• No price changes noted.
• Cereal hay:  +/-$0 ($250 to $320/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($350 to $450/t). Prices remain steady this week.
• Straw: +/-$0 ($80 to $130/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($180 to $250/t). Prices remain steady this week.

Bega Valley

• Some light showers came through Bega this week and more is forecasted for the next week. Weather is beginning to cool down and more rain is needed.
• Farmers have now pulled up on planting in this area due to lack of moisture however more oats might be sewn with rain.  Most of the irrigated winter ryegrasses, oats and cereals are in, with still no autumn break. There is lots of fodder being fed out on farm as paddocks are bare.
• Hay is in high demand but supply is extremely limited. Hay is being transported from South Australia or the Riverina but it’s very hard to source. Demand is expecting to exceed supply for Bega.
• No price changes noted this week.
• Cereal hay: +/-$0 ($300 to $360/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($350 to $400/t). Prices remain steady this week.
• Straw: +/-$0 ($140 to $170/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($200 to $300/t). Prices remain steady this week.

Goulburn/Murray Valley

• The first substantial frost has hit the Goulburn/Murray Valley Region. There’s been up to 20mm of rainfall reported in the last week but it’s still very dry.          
• Fodder sewing is very close to complete for the area. Farmers are still loading hay trucks and sending them far north on the Hume Highway from Holbrook to Goulburn and the Liverpool Plains.  
• Demand is quite strong for any fodder and there is diminishing supply of hay in the Goulburn Murray Valley region. There is limited supply of lucerne. It is reported that most visible hay on farm is spoken for.
• Straw and pasture prices have firmed this week.
• Cereal hay: +/-$0 ($100 to $230/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($250 to $300/t). Prices remain steady this week.
• Straw: +$10 ($90 to $120/t). Prices have firmed this week.
• Pasture hay: +$10 ($150 to $200/t). Prices have firmed this week.

Gippsland

• Rain has fallen across Gippsland this week in light showers and the east is still very dry.  
• Current on farm activity is sewing pastures and annual ryegrasses but the illusive autumn break is limiting activity in the East. There is very little grass available to graze.
• Hay is increasingly hard to source and there is a lot more enquiry. Demand is strong and there are regular truckloads coming in from the west.           
• No price change noted this week.
• Cereal hay: +/-$0 ($160 to $300/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($350 to $400/t). Prices remain steady this week.
• Straw: +/-$0 ($140 to $170/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($120 to $240/t). Prices remain steady this week.

Southwest Victoria

• Western district received follow up rainfall this week from 10-25mm after last weeks substantial downpour. This is promising for securing next seasons growth and supply of fodder.        
• Most planting has finished for now with farmers hoping for some more sunshine, as growth is slow.
• Local demand is solid for this area and has been very strong for the past two weeks. It is reportedly very difficult to source hay with lucerne and pasture difficult to source, although there is some limited second grade vetch and cereal available. Full hay sheds are misleading – this is most likely committed and not for sale.
•  Second grade Vetch is reportedly selling at $250-$315 per tonne delivered.
• Cereal hay prices have firmed and expected to continue to firm.
• Cereal hay: +$15 ($180 to $250/t). Prices have firmed this week.
• Lucerne hay: +/-$0 ($250 to $350/t). Prices remain steady this week.
• Straw: +/-$0 ($100 to $150/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($110 to $160/t). Prices remain steady this week.

Southeast South Australia

• Rain has passed through the southeast this week and land is looking quite moist and green.
• Seeding is underway with farmers re-sewing pasture, wheat and barley and broad beans won’t be too far away.
• Local demand has picked up in the last fortnight with trucks moving around the region.
•  No price changes noted this week.
• Cereal hay: +/-$0 ($60 to $160/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($160 to $250/t). Prices remain steady this week.
• Straw: +/-$0 ($60 to $90/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($70 to 160/t). Prices remain steady this week.

Central South Australia

• As expected, 10-20mm of rainfall came through this region in the past week. More rain is needed.
• Most of the seeding for the region will be finished now. Some farmers have increased planting by 25% from last year after the recent clearing of carryover hay.
• Local demand is very strong. Current demand is expected to sustain the market for some time as the winter creeps in and some producers are retaining private stocks. External demand continues to be strong, ranging from mid to northern South Australia, Victoria and New South Wales.
• Cereal hay: +/-$0 ($140 to $170/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($250 to $330/t). Prices remain steady this week.
• Straw: +/-$0 ($80 to $130/t). Prices remain steady this week.

Southwest Western Australia

• There have been reports of upwards of 50mm in the Bridgetown over the weekend and more rain through the south-west dairy region.
• Seeding is continuing which is slightly behind schedule for the year. Farmers are happy for the break to have hit.
• Local domestic demand is very strong and it’s reportedly difficult to source supplies. The export market is supporting the strong domestic demand.
• There are no changes in prices 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 140/t) Prices remain steady this week.
• Pasture hay: +/-$0 ($80 to $200/t). Prices remain steady this week.

Northwest Tasmania

• The North-west of Tasmania near Cressy and Launceston has received approximately 20mm of rainfall in the past week and cool weather.     
• On-farm activity includes planting mixtures of grass and clover, barley and wheat.           
• Demand for fodder is quite strong in the north-west dairy region, which is expected to continue for some time.         
• Prices haven’t changed but expected increase shortly.
• 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.