Hay Report – 15 June 2018

National Summary

• As winter settles in, demand for fodder is noticeably strong in all regions of the country. There are reports of trucks on every main highway, delivering feed where it is needed.
• Further to the transport grants, the NSW Government has released The Drought Assistance Fund, to facilitate sustainable primary production in New South Wales during drought. Farmers can apply for funding to assist with transport, for water and fodder infrastructure and genetics.
• Most regions have reported rainfall this week, although it continues to fall in patches, and subsoils are reportedly lacking in moisture. WA has had a break in the past fortnight, and seeding is on schedule. Southeast South Australia and Tasmania appear to have also had a clear break, where most other regions have had a late start to the season. Frosts, snow and severe weather warnings have been forecasted for the weekend in New South Wales and Victoria.
• There have been some reports of staggered growth and mouldy seed, without substantial follow-up rain to encourage germination in Victoria. Bega reportedly has had some good growth with crops almost ready to graze.
• After weeks of rising enquiry, demand appears to have hit a peak in central New South Wales and is plateauing. Rising demand is still reported all around the country and prices are firming accordingly as supply diminishes.
• 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.
• 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

• Protein and roughage is becoming difficult to source in the north, however alternative feeds such as sorghum stubble and high-moisture corn stubble might be a future option.
• 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

• There is a cold front pushing through central New South Wales this weekend, with snow predicted.
• 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, especially for cattle, is very strong and it’s reportedly difficult to source domestic supply of fodder.
• The export market is supporting this strong domestic demand. 
• 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 have had not much rainfall this week and weather has been mostly fine. Heavy frosts and cold weather have come through in this region.        
• There is reportedly lots of activity on farm with cutting and baling of little squares, big squares and rounds.
• There continues to be a few more enquiries for hay each week, however demand is not overly strong just yet. Lucerne is getting difficult to source in this area and usually comes from Gatton.
• 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

• The Darling Downs region has not had rainfall over the past two weeks and temperatures are mild. Frosts are beginning to emerge.     
• There has not been much fodder planted yet, as planting is mostly determined by rainfall in this region. There is reportedly not much roughage such as barley and wheat straw in the market and alternatives such as high-moisture corn and sorghum stubble, almond hulls and cottonseed are being sourced.
• Demand has picked up a little but it’s fairly moderate.
• There continues to be a hay shortage in this area and it’s expensive to source. There is very limited supply of cereal lucerne and straw in this region. Farmers are securing hay where possible.   
• There is some vetch available with prices comparable to lucerne hay. There is some pasture hay selling locally for $250-$300 per tonne delivered.
• Cereal hay: +/-$0 ($340 to $380/t). Prices remain steady 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.
• Pasture hay: ($250 to $300/t).

North Coast NSW

• Weather has been fine with a little bit of rain in the last week, amenable to hay making weather. There have been reports of frosts near Tenterville.
• Rice and straw harvests are underway. Farmers are busy cutting and baling pasture before the frosts hit. Oats have been planted.
• External demand is very strong and has picked up in the last month from Tamworth and the Northern Tablelands. Local demand is not overly strong, but farmers are looking to secure hay for the winter.       No price changes noted this week.
• 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: +$100 ($300 to $350/t). Prices have firmed this week.

Central West NSW

• The Central West of New South Wales has had patchy rainfall over the past two weeks. Orange received between 5-16mm of rain in the last week with Forbes only recording 4mm. A cold front is expected this weekend with snow forecasted and a temperature maximum of 4 degrees.
• The Government has announced transport grants to support farmers affected by drought.
• Germination has slowed right off as the cold front hits this region. Most on-farm activity is concentrated around feeding and maintaining livestock, which is challenging with the limited supply of fodder. Some pockets around Cowra and Young seem to have some established canola and grazing crops. 
• Demand has hit a peak and is plateauing for this region. Lucerne is hard to source, as supply is limited and what’s left is most likely 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: +$10 ($100 to $130/t). Prices have firmed this week.
• Pasture hay: +/-$0 ($180 to $250/t). Prices remain steady this week.

Bega Valley

• Bega has had 40mm of rain in the last week and the weather is cooling down.       
• There is plenty of hay being carted into this area.
• Most of the irrigated winter ryegrasses, oats and wheat are in and have grown 3-4inches in the past month. There is lots of fodder being fed out on farm and pastures and crops have been growing well albeit slowly.
• Hay is still 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.
• Prices for lucerne and straw have firmed this week.
• Cereal hay: +/-$0 ($300 to $360/t). Prices remain steady this week.
• Lucerne hay: +$15 ($380 to $400/t). Prices have firmed this week.
• Straw: +/-$0 ($140 to $170/t). Prices remain steady this week.
• Pasture hay: +$35 ($250 to $320/t). Prices have firmed this week.

Goulburn/Murray Valley

• The Goulburn and Murray Valley have had some rain the past fortnight, ranging from 20-40mm. This recent consistent rainfall is giving farmers hope for a good season.
• Hay and straw supplies are very limited in this area.
• Demand continues to be quite strong for fodder and there is diminishing supply of hay in the Goulburn Murray Valley region. It is reported that most visible hay on farm is spoken for.
• 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: +/-$0 ($90 to $120/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($150 to $200/t). Prices remain steady this week.

Gippsland

• There is a mixed report of rainfall measurements across Gippsland for June. The South is looking very dry with less than 4mm of rain this month, Warragul in the west has received 10mm whilst some areas in the west has received upwards of 20mm. There has been a severe weather warning issued for Gippsland of gale force winds.
• There is very little grass available to graze in the south and germination has been very slow.
• Hay is increasingly hard to source in Gippsland and demand is strong. There have been regular trucks carting hay right throughout the region.
• Prices have firmed this week.
• Cereal hay: +$45 ($160 to $300/t). Prices have firmed this week.
• Lucerne hay: +$70 ($350 to $400/t). Prices have firmed this week.
• Straw: +$10 ($140 to $170/t). Prices have firmed this week.
• Pasture hay: +/-$0 ($120 to $240/t). Prices remain steady this week.

Southwest Victoria

• Western district received more follow-up rain over the past fortnight from 10-25mm. 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.
• It is reportedly very difficult to source hay and demand is very strong. Full hay sheds are misleading – this is most likely committed and not for sale.
•  No price changes noted.
• Second grade Vetch is reportedly selling at $250-$315 per tonne delivered.
• Cereal hay: +/-$0 ($180 to $250/t). Prices remain steady 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

• There has been regular rainfall in the past week with 12mm recorded each day for the past four days. Follow up rains have been consistent since the break.     
• Seeding is finished for this region now, as it’s too wet to continue.
• There is lots of hay being carted around at the moment, as external demand for hay is very strong.
•  Prices have firmed this week.
• Cereal hay: +$150 ($220 to $300/t). Prices have firmed this week.
• Lucerne hay: +$70 ($250 to $300/t). Prices have firmed this week.
• Straw: +$25 ($90 to $110/t). Prices have firmed this week.
• Pasture hay: +$80 ($180 to $200/t). Prices have firmed this week.

Central South Australia

• Reportedly Central South Australia has only received one quarter of the rainfall it would normally get, having had just 10mm on average for June. More rain is needed.
• Germination is reportedly very patchy; oats are struggling to emerge. Some farmers have increased planting by 25% from last year after the recent clearing of carryover hay.
• There has been lots of enquiry from the eastern states of Australia, and locally in South Australia. Some firms are requesting large quantities of hay in contracts that will be very difficult to fulfil with current demand.  External demand continues to be strong, ranging from mid to northern South Australia, Victoria and New South Wales. Export carryover is supplying the domestic market.
• Cereal and lucerne prices have firmed.
• Cereal hay: +$10 ($150 to $180/t). Prices have firmed this week.
• Lucerne hay: +$20 ($270 to $350/t). Prices have firmed this week.
• Straw: +/-$0 ($80 to $130/t). Prices remain steady this week.

Southwest Western Australia

• A break has swept through this western state with reportedly 15mm of rain falling in York in the past week. The lower southern areas reportedly missed out on rainfall.
• Seeding has mostly finished for this region now.
• Seeding is continuing which is slightly behind schedule for the year. Farmers are happy for the break to have hit.
• There is high demand for hay from the south-east and south coastal areas, particularly for cattle feed. It’s reportedly difficult to source supplies. The export market is supporting the strong domestic demand. 
• Prices have firmed this week.
• Cereal hay: +$40 ($180 to $250/t). Prices have firmed this week.
• Lucerne hay: +/-$0 ($450 to $490). Prices remain steady this week.
• Straw: +$20 ($100 to 160/t). Prices have firmed this week.
• Pasture hay: +/-$0 ($80 to $200/t). Prices remain steady this week.

Northwest Tasmania

• Northern areas of Tasmania have received winter rains of 15-30mm in the past fortnight.  
• Demand for fodder is quite strong in the north-west dairy region, which is expected to continue for some time.
• No price changes noted this week.
• 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.