Hay Report – 29 June 2018

National Summary

• Frosts are moving across the land throughout the country this week, as the end of the financial year looms.
• Growth potential of crops is limited by the cool weather. Although there wasn’t much rainfall across the country this week with the exception of Western Australia, heavy fogs, dew and frosts are keeping pastures too wet to spray and drill. There have been some reports of staggered growth and mouldy seed, without substantial follow-up rain to encourage germination in Victoria.
• Demand is expected to exceed supply in Australia this year, as farmers and the agricultural industry turn to forecasting for next season. Despite the high prices of fodder and grain, fodder contracts are secured where possible.
• Demand appears to be easing in Queensland and New South Wales. It will be interesting to see what the future market holds.
• There is still a lot of hay 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

• Transporting hay may become difficult as wetter weather ensues in the north and central regions, with problems with rain damage and loading.
• 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

• Rainfall is beginning to moisten soils but much more is needed. Transporting hay may become difficult as wetter weather ensues, with problems with rain damage and loading.
• 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.
• 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 miserable weather in the past week with drizzles of 3-5mm per day.
• Opportunistic barley and oats are being planted for hay. Maize silage is almost finished for the region however demand for this product is fairly low due to dairy farmers leaving the industry.
• Enquiries have dropped off due to the weather but demand is expected to increase. Lucerne is getting difficult to source in this area and usually comes from Gatton.
• There is no price change noted this week although there is an expected firm is demand continues.
•  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

• Toowoomba has received 10mm over Wednesday and Thursday this week with more rain forecasted early next week. This will be the first relatively substantial rain event for the month of June.
• Activity is low as there is no green growth and no weeds to spray. 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 is currently moderate which is relieving the national market.
• 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.
• Prices have firmed to account for high freight costs for supply from the south of Australia.
• Cereal hay: +$20 ($360 to $400/t). Prices have firmed this week.
• Lucerne hay: +$25 ($440 to $550/t). Prices have firmed this week.
• Straw: +/-$0 ($250 to $320/t). Prices remain steady this week.
• Pasture hay: +/-$0  ($200 to $300/t). Northern pasture price ranges are now being reported. Please note, these are different to southern species.

North Coast NSW

• It’s apparently beginning to dry out in the region, although it’s not of concern to farmers at this time.  There have been 3-4 light frosts in the last fortnight, which haven’t caused much damage.
• There’s lots of hay being carted to the Northern Tablelands from this region at the moment and not much pasture hay to be baled.
• Rhodes grass supply is running low and approximately one month’s supply left, if it continues to be sold at the current rate. There’s some early oats in the region, which will be available in 3-4 weeks as silage. 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.
• 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

• Dubbo and Forbes registered 10-11mm of rainfall on Thursday, with Orange reporting 6mm over the week and drizzly weather.
• The Government has announced assistance funds for transport, fodder and freezing genetics to support farmers affected by drought.
• 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. Germination has slowed right off in the as cooler temperatures settle in.
• Demand appears to be easing off for the first week since late summer, with fewer enquiries for hay reported. Hay is being sourced from Victoria and South Australia where available and low-grade carryover from 2016 is moving. Export reserves are being acquired. 
• Prices have firmed to account for freight costs from the south of Australia.
• Cereal hay:  +$55 ($300 to $380/t). Prices have firmed this week.
• Lucerne hay: +/-$0 ($350 to $450/t). Prices remain steady this week.
• Straw: +$140 ($200 to $310/t). Prices have firmed this week.
• Pasture hay: +$85 ($250 to $350/t). Prices have firmed this week.

Bega Valley

• Bega has had 4mm of rainfall this week.
• 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 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 haven’t changed this week.
• Cereal hay: +/-$0 ($300 to $360/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($380 to $400/t). Prices remain steady this week.
• Straw: +/-$0 ($140 to $170/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($250 to $320/t). Prices remain steady this week.

Goulburn/Murray Valley

• Frost warnings were issued this week for northern Victoria by the Bureau of Meteorology, with reportedly seven frosts in seven days near Echuca.
• Oats are germinated and most crops are getting past the first leaf stage, which is promising for the region. Growth has slowed right down with frosts.
• Demand continues to be quite strong for fodder and there is diminishing supply of hay. Export hay is being acquired.
• Cereal hay: +/-$0 ($100 to $260/t). Prices have firmed this week.
• Lucerne hay: +/-$0 ($250 to $300/t). Prices remain steady this week.
• Straw: +/-$0 ($90 to $140/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($150 to $250/t). Prices remain steady this week.

Gippsland

• There is not much rainfall to report in Gippsland this week.         
• Dairy farmers are acquiring straw to blend with their silage. Reportedly, direct drilling is down by 50% this season on the MID due to lack of rain and moisture this season. It is interesting to note that there is a general consensus that farmers in the  Gippsland region have been shocked by the limited national supply of hay and firming of prices.
• Hay is increasingly hard to source in Gippsland and demand is strong. There have been regular trucks carting hay right throughout the region
• There is particularly limited vetch and lucerne.  
• No prices changes noted this week.
• Cereal hay: +/-$0 ($250 to $320/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($380 to $450/t). Prices remain steady this week.
• Straw: +/-$0 ($140 to $200/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($120 to $280/t). Prices remain steady this week.

Southwest Victoria

• The sun has been shining in Western Victoria this week, with not much rain to report. Some frosts have come through with cool weather.
• Grass has started to grow and pastures are greening up, albeit slowly.
• Local demand has eased this week, reportedly due to end of financial year. It is very difficult to source hay. Protein hay is extremely limited with some cereal and straw available
• Prices have firmed this week.
• Cereal hay: +$28 ($220 to $265/t). Prices have firmed this week.
• Lucerne hay: +$25 ($300 to $380/t). Prices have firmed this week.
• Straw: +$23 ($130 to $165/t). Prices have firmed this week.
• Pasture hay: +$25 ($180 to $240/t). Prices have firmed this week.

Southeast South Australia

• No rain to report this week. Frosts have come through.
• Growth is reportedly quite slow in this region due to the cool weather.
• Local demand has subsided due the recent rain, but external demand is reportedly still strong.
• No price changes noted.
• Cereal hay: +/-$0 ($200 to $300/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($250 to $300/t). Prices remain steady this week.
• Straw: +/-$0 ($90 to $110/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($180 to $200/t). Prices remain steady this week.

Central South Australia

• There has been no rainfall for two weeks, just cold weather and frosts.
• Germination is reportedly very patchy. 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.    
• No price changes noted this week.
• Cereal hay: +/-$0 ($150 to $180/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($270 to $350/t). Prices remain steady this week.
• Straw: +/-$0 ($80 to $130/t). Prices remain steady this week.

Southwest Western Australia

• There has been more rainfall in and around the dairying region of Bridgetown this week, with upwards of 10mm reported.
• Seeding has mostly finished for this region now and the consistent rains since the break is promising.
• 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. 
• No price changes noted but they are expected to firm.
• Cereal hay: +/-$0 ($180 to $250/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($450 to $490). Prices remain steady this week.
• Straw: +/-$0 ($100 to 160/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($80 to $200/t). Prices remain steady this week.

Northwest Tasmania

• There’s been no rain to report across most of Tasmania, except for Smithton with 10mm of rain this week.   Growth has slowed right down. The heavy fog and dew has kept things too wet to spray of drill.            
• Demand for fodder is very strong particularly in the northwest dairy region.
• This is expected to continue for some time. There’s not much lucerne around for sale.
• Prices have firmed slightly.
• Cereal hay: +$20 ($190 to $230/t) Prices have firmed this week.
• Lucerne hay: +$65 ($300 to $350/t) Prices have firmed this week.
• Straw: +$100 ($200 to $240/t) Prices have firmed this week.
• Pasture hay: +/-$0 ($140 to $190/t) Prices have firmed this week.