Hay Report – 6 July 2018

National Summary

• As we enter into the middle of winter, plant growth appears to have varying results across the country.
• Some areas such as Tasmania, Western Victoria and South East South Australia have reported good growth levels after consistent rainfall throughout June. Other regions such as New South Wales, Darling Downs, Gippsland, and Central South Australia are without adequate rainfall. Pending more winter rain, there is promise for regions such as southwest Western Australia and Goulburn Murray Valley.
• Plant growth remains slow with very cold temperatures experienced in the south east of Australia. Some areas have had enough growth that farmers are beginning to graze, easing the pressure of feeding fodder.
• There is no doubt that demand for feed across Australia is strong and will continue for some time. However, there seems to be signs of the market easing slightly due to many factors.
• Carryover from the last three years appears to have moved quite quickly in the past three months. It is undetermined the availability of carryover stock left in the market.
• 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, alternative feeds such as sorghum stubble and high-moisture corn stubble is being used in the region.
• Alternative fodder supplies such as almond hulls and cottonseed is impacting on the fodder market at present. These alternate food supplies are starting to become more difficult to source and increasingly expensive.
• 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 in some of the region but much more 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.
• New season hay is selling quickly and there is limited carryover stocks from 2016 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.
• There is increased demand for cereal hay in the south west of the region with this area having greater grass growth.
• 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.
• Supply in this region is limited and stocks are being delivered from other parts of the state.
• 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 weather in the Tablelands has started to improve. Drizzle has started to ease and the sun is starting to shine.
• Due to the wet conditions that have prevailed in the area not much activity is happening on the farm. Some fertilizing is occurring as farmers make the most of the rain, reducing the need for irrigation. There is hay waiting to be made and if the good weather continues there is the potential for hay to be made next week.
• Demand is still only moderate this week due to the weather; however it is anticipated that this will increase in the coming months due to the dry conditions elsewhere. 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

• There is still no rainfall in the Darling Downs and the area remains dry.    
• 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. These alternatives are becoming increasingly expensive. Oat crops planted early in the season are dying due to the lack of follow-up rain. There is minimal planting of winter crops as the area remains dry and the window for planting is closing. Currently pasture hay is being sourced from the Northern Territory. In some areas of the Darling Downs and South Burnett pasture hay is being made.
• Demand is moderate as there is little top-up from feedloters. 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.
• There is no price change noted this week.
• Cereal hay: +/-$0 ($360 to $400/t). Prices have firmed this week.
• Lucerne hay: +/-$0 ($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

• Rainfall has been patchy through the North Coast of NSW. Some areas have received substantial rainfall with Glenn Innes reportedly receiving 50mm of rain. There are other areas in the region that have received little-to-no rain and remain relatively dry.
• Due to the rain farm activity has slowed. Once conditions dry there is little hay to be made. 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. There’s reportedly approximately one month’s supply left, assuming it’s being sold at the current rate. There’s some early oats in the region, which will be available in 2-3 weeks as silage. External demand is still 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.
• There is no price change noted this week
• Cereal hay:  +/-0 ($300 to $380/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($350 to $450/t). Prices remain steady this week.
• Straw: +/-0 ($200 to $310/t). Prices remain steady this week.
• Pasture hay: +/-0 ($250 to $350/t). Prices remain steady this week.

Central West NSW

• The Central West had approximately 10mm of rainfall on Thursday last week. There hasn’t been much rain since.
• The Government has announced assistance funds for transport, fodder, for preserving genetics and water infrastructure 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, however reportedly there is not much bulk to these crops. Germination has slowed right off in the as cooler temperatures settle in.
• Demand in the area appears to be easing. This may be due to the fact that it is becoming known that many traders in the region are no longer trading hay outside their contracts.
• Hay is being sourced from Victoria and South Australia where available and low-grade carryover from 2016 is moving. Export reserves are being acquired. 
• Cereal prices have firmed this week.
• Cereal hay:  +$45 ($350 to $420/t). Prices have firmed this week.
• Lucerne hay: +/-$0 ($350 to $450/t). Prices remain steady this week.
• Straw: +/-0 ($200 to $310/t). Prices remain steady this week.
• Pasture hay: +/-0 ($250 to $350/t). Prices remain steady this week.

Bega Valley

• Bega has reportedly received 20mm rain late last week. Although there is surface moisture present, subsoils are still relatively dry. Temperatures have dropped below zero for the most of the week and frosts have come through.
• Due to the frosts, pasture growth has slowed right down. Farmers are feeding silage and hay where possible, and refraining from grazing. There is plenty of hay being carted into this area.
• Local demand is moderate possibly due to high prices of feed. Supply is limited in this area. Hay is being transported from South Australia or the Riverina but it’s very hard to source. Prices haven’t changed this week.
• Cereal and lucerne prices have firmed this week.
• Cereal hay: +35 ($350 to $380/t). Prices have firmed this week.
• Lucerne hay: +25 ($380 to $450/t). Prices have firmed 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

• The Goulburn/Murray Valley region has received very little rain over the week and most areas of the region have experienced heavy frosts.
• The heavy frosts in the region have further dried out the soil and slowed growth.­ Oats are reportedly germinated and most crops are getting past the first leaf stage, which is promising for the region. Late crops are patchy and it is now too late in the season to plant new crops.
• Demand continues to be quite strong for fodder and there is diminishing supply of hay. Export hay is being acquired.
• Cereal and lucerne hay prices have firmed this week.
• Cereal hay: +10($150 to $280/t). Prices have firmed
• Lucerne hay: +40($280 to $350/t). Prices have firmed
• Straw: +/-0($90 to $140/t). Prices remain steady this week.
• Pasture hay: +/-0($150 to $250/t). Prices remain steady this week.

Gippsland

• The Gippsland region received little to no rain this week and frosts have been reported in the region.
• Frosts have slowed the growth of crops and hampered the growth of newly sewn crops. Due to the lack of growth in the region farmers need to source feed for their animals. Alternative feed sources such as almond hulls are becoming increasingly expensive and difficult to source.
• The demand for hay in Gippsland is rising due to the lack of growth in the region. Hay is increasingly hard to source. There have been regular trucks carting hay right throughout the region. Vetch and lucerne supply is limited.
• Prices have firmed this week.
• Cereal hay: +35 ($300 to $340/t). Prices have firmed this week.
• Lucerne hay: +35 ($400 to $420/t). Prices have firmed this week.
• Straw: +/-0 ($130 to $165/t). Prices remain steady
• Pasture hay: +75 ($250 to $300/t). Prices have firmed this week.

Southwest Victoria

• Most of South Western Victoria has received little rain this week and have experienced some mild frosts. Those farms closer to the coast have not experienced these frosts and have received some rain.
• For most of the region grass has started to grow and pastures are greening up, albeit slowly. Along the coast good growth rates have been reported and there has been a cut-back in hand feeding.
• Local demand is still strong, however has eased since last month. It is very difficult to source hay. Protein hay is extremely limited with some cereal and straw available. There has been pasture growth in the region and the demand for this has eased. Currently there is a higher demand for cereal hay.
• Prices remain steady this week.
• Cereal hay: +/-0 ($220 to $265/t). Prices remain steady this week.
• Lucerne hay: +/-0 ($300 to $380/t). Prices remain steady this week.
• Straw: +/-0 ($130 to $165/t). Prices remain steady this week.
• Pasture hay: +/-0 ($180 to $240/t). Prices remain steady this week.

Southeast South Australia

• The Southeast of South Australia has received little rainfall this week. It is forecasted that there will be more rain this weekend. This rain will be welcomed as although the area is not dry, it is not as wet as would usually be at this time of year.
• There is still quite a bit of movement of hay in the area. Crops are well emerged and seeding is finished for the season.
• Demand for hay in the area has picked up in the last month and is expected to continue to increase over the next month, while farmers wait for growth. It has been reported that most of the carryover supply in the region has moved but there is still some good quality supply available.      
• There is now limited supply of low-grade lucerne in the region. Thus, prices have firmed with only remaining good quality lucerne in the market.
• Cereal hay: +/-$0 ($200 to $300/t). Prices remain steady this week.
• Lucerne hay: +50 ($300 to $350/t). Prices have firmed.
• 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 three weeks now and things are pretty dry. Heavy frosts have been reported in the area, further drying out the soil.
• The cold frosts and prevailing dry conditions have stunted growth and germination in the region. This has slowed down farming activities. Farmers are doing what they can and spraying crops, with a few farmers fertilising in hope of rain.
• Local demand is strong. 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

• The Southwest of Western Australia has welcomed some much needed rain this week. Bridgetown received around 60mm of rain this week, while other areas such as Permberton received as much as 133mm.
• Seeding has mostly finished for this region now and the consistent rains since the break is promising. Wheat crops are looking good. Southern coastal crops are struggling but the rain will have helped and should ease the situation eventually.
• There is high demand for hay from the south-west 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

• The Bureau of Meteorology has recorded approximately 10mm of rainfall in the dairy region of Smithton in the last week. There is upwards of 50mm of rain forecasted this weekend, which might induce waterlogging. Growth is quite slow due to cold weather and frosts have been reported.
• Weather in the North-west of Tasmania has been ideal this winter, with farmers reporting regular weekly rainfall in June and very good growth.
• Demand for fodder has eased in the north-west due to the good growth. Demand is strong in the drier parts of Tasmania, particularly in the South.       
• No price changes noted this week.
• Cereal hay: +/-0 ($190 to $230/t) Prices remain steady this week.
• Lucerne hay: +/-0 ($300 to $350/t) Prices remain steady this week.
• Straw: +/-0 ($200 to $240/t) Prices remain steady week.
• Pasture hay: +/-$0 ($140 to $190/t) Prices remain steady this week.