Hay Report – 13 July 2018

National Summary

• As the last of the country’s winter planting window draws to a close in the Darling Downs, we anticipate the next seasons fodder supply.
• Some regions such as Western Victoria, South-east South Australia, North Coast New South Wales, Western Australia and Tasmania, have had consistent rainfall. We are seeing growth and healthy crops emerging in these regions. It is not yet too late for regions such as Central New South Wales, Darling Downs and Gippsland. These drier regions have crops that have germinated, or are lying dormant, that show promise. With some good follow-up rain these regions could yield some healthy crops. Some farmers in the Darling Downs have sewn late winter crops in hopes of this follow-up rain.
• The demand for fodder, although it has eased in some regions, remains high throughout the country. It is anticipated only to increase as growth slows, on-hand supplies diminish, and in some regions, calving occurs. With this, all eyes are on the market.
• The current market was far from forecasted and it shows how quickly it can change. It is a reminder that we do not know what the next season holds.
• There is a lot of hay being 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 stock 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

• Dry sunny conditions prevailed for most of the week; however there was light drizzle in the region on Wednesday.
• As the dry conditions continued, farmers prepared to make hay. Wednesday’s drizzle interrupted this and now farmers wait for it to dry once again.
• Demand has increased in the Tablelands. It is postulated this increase in demand is due to the frosts last month that affected crop growth. Currently there is lots of hay in the area going to Tamworth. Lucerne is becoming hard to source and increasingly expensive, usually coming from Gatton.
• There is no price change noted this week although there is an expected firm as 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.
• Due to the shortage of hay in the region, it is cautioned to be wary of the weight of bales, with farmers packing lighter bales for sale

Darling Downs

• There has been little to no rain in the Darling Downs over the week. Toowoomba recorded 8mm over Friday and Saturday, however this was not enough to wet the soil.  
• Oat crops planted early in the season are dying due to the lack of follow-up rain. Some farmers are planting late winter crops in the hope of rain.
• The lack of rain in the region has seen some farmers give this seasons planting a miss altogether.
• There is a lot of hay being carted around the area. It is reported there are round bales moving to Tamworth from this region.
• Demand for hay is high in the Darling Downs. There is a shortage of hay in the region. 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 remain steady this week.
• Lucerne hay: +/-$0 ($440 to $550/t). Prices remain steady this week.
• Straw: +/-$0 ($250 to $320/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($200 to $300/t) Prices remain steady this week. Northern pasture price ranges are now being reported. Please note, these are different to southern species

North Coast NSW

• Wet conditions in the area have subsided and the North Coast of NSW has had a relatively dry week, only experiencing some mild rainfall Friday.
• The lack of rainfall in the area has allowed some farmers to sew late crops. Pasture hay from the region is being carted to the Northern Tablelands. Lucerne hay is difficult to source and is largely coming from Gatton. Rhodes grass supply is running low, with the majority of this now spoken for. There’s some early oats in the region, which should be available in 2-3 weeks as silage.
• North Coast NSW is still relatively green and has had a somewhat mild winter thus far keeping the demand for fodder in the region steady. There are frosts predicted for next week, and as the weather cools, it is anticipated that local demand will increase. There is still a lot of enquiry coming in from outside the region, however this has eased a little this week.
• Cereal prices have firmed this week.
• Cereal hay:  +10 ($280 to $320/t). Prices have been corrected from an error in the last report.
• Lucerne hay: +/-$0 ($400 to $450/t). Prices have been corrected from an error in the last report.
• Straw: +/-0 ($250 to $300/t). Prices have been corrected from an error in the last report.
• Pasture hay: +/-0 ($300 to $350/t). Prices have been corrected from an error in the last report.

Central West NSW

• There was patchy rainfall over Central West NSW Sunday. This was minimal and conditions remain dry. Frosts have come through this week and continues to slow growth.
• The Government has announced assistance funds for transport, fodder, for preserving genetics and water infrastructure to support farmers affected by drought.
• Early rains allowed for crops to shoot, however the prevailing dry, cool conditions have stunted growth. There is no bulk to these crops and no moisture underneath the soil to ensure they are successful and high yielding.
• Demand continues to ease. This may be attributed to many traders in the region not trading outside their contracts. Hay in the region continues to be sourced from Victoria and South Australia.
• There has been no price change this week.
• Cereal hay:  +/-$0 ($350 to $420/t). Prices remain steady.
• 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 received no rainfall this week and had slight frosts. Strong winds have been reported, which have further dried the soil.
• Growth of crops continues in the region, albeit slowly. Many farmers are allowing grazing, feeding stock hay and silage where possible. Hay is becoming increasingly difficult to source.
• The demand for hay is steady in the region. There is a lot of hay being carted into the area, mainly from Central Victoria and South Australia.
• It has been reported that Clover can be obtained at around $420/t delivered locally.
• Cereal prices have firmed this week.
• Cereal hay: +20 ($370 to $400/t). Prices have firmed this week.
• Lucerne hay: +/-$0 ($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. Frosts continue in the area, with heavy frosts reported on Tuesday.
• Soil in the region remains dry and cool. This has significantly impacted canola crops which are struggling to grow, however, cereal and vetch crops are still looking viable.
• The demand for fodder remains strong in the region. Most hay in Goulburn/Murray Valley has been sold and hay is being carted into the region. Straw is still available and is being moved to areas in NSW and Victoria.
• Straw hay prices have firmed this week.
• Cereal hay: +/-0 ($150 to $280/t). Prices remain steady this week.
• Lucerne hay: +/-0 ($280 to $350/t). Prices remain steady this week
• Straw: +5 ($100 to $140/t). Prices have firmed this week.
• Pasture hay: +/-0($150 to $250/t). Prices remain steady this week.

Gippsland

• There has been some rainfall in the Gippsland region this week; however it has not been in the areas that need it most. Central and East Gippsland have received minimal rainfall this week, it has not been enough to wet the soil, and heavy frosts have dried soils further. Areas in the West of Gippsland have seen some good rainfall this week, with areas such as Wonthaggi recording around 25mm and Mount Baw Baw around 60mm.
• West Gippsland appears to have growth, however due to the cooler weather this has slowed. The prevailing dry conditions combined with the heavy frosts have seen crop growth in Central and East Gippsland stunted. This means that farmers have had to increase their fodder rations with farmers lead feeding in the area.
• The demand for hay is strong in the region and this is anticipated to increase later in the month when cows calf. There is a lot of hay coming into the area from Western Victoria and South Australia and this is increasingly difficult to source.
• Prices remain steady this week.
• Cereal hay: +/-0 ($300 to $340/t). Prices remain steady this week.
• Lucerne hay: +/-0 ($400 to $420/t). Prices remain steady this week.
• Straw: +/-0 ($140 to $200/t). Prices have been corrected from an error in the last report.
• Pasture hay: +/-$0 ($250 to $300/t). Prices remain steady this week.

Southwest Victoria

• Western Victoria has had a fairly wet week. There has been rainfall in most areas since Thursday. Warrnambool recorded around 35.5mm, Casterton 32mm and Ararat 18mm.
• Rains have allowed good grass growth in the region, with the grass now starting to get ahead of the cows.
• There is limited protein hay available however; grass growth in the region has decreased the local need and demand for this. Currently the demand in Western Victoria is for cereal hay and this remains steady. There has been pasture growth in the region and the demand for this has eased.
• Prices for cereal hay and straw have firmed this week.
• Cereal hay: +13 ($230 to $280/t). Prices have firmed this week.
• Lucerne hay: +/-0 ($300 to $380/t). Prices remain steady this week.
• Straw: +5 ($140 to $165/t). Prices have firmed this week.
• Pasture hay: +/-0 ($180 to $240/t). Prices remain steady this week.

Southeast South Australia

• The Southeast of South Australia has welcomed some substantial rainfall this week. Mount Gambier recorded around 47mm, Padthaway 44mm and Keith 32mm.
• Rains in the area have improved the growth of crops which are looking quite healthy. While there is limited hay available in the area, there is still a lot of hay being moved from this region. Hay is being carted from Southeast South Australia to Victoria and NSW.
• Good growth in the area has kept local demand steady. There is still a lot of enquiry for hay coming in from outside the region. This has decreased slightly for some suppliers as knowledge spreads that they have no hay to sell outside their contracts. Demand is expected to continue to increase over the next month, while farmers wait for growth.      
• Prices for pasture hay have firmed this week.
• Cereal hay: +/-$0 ($200 to $300/t). Prices remain steady this week.
• Lucerne hay: +/-0 ($300 to $350/t). Prices remain steady this week.
• Straw: +/-0 ($90 to $110/t). Prices remain steady this week.
• Pasture hay: +15 ($180 to $230/t). Prices have firmed this week.

Central South Australia

• It has now been four weeks without rain for the majority of Central South Australia. Some areas, such as Roseworthy received a little rainfall over Friday and Saturday, but the 5.2mm recorded was not enough to wet the soil. There were some light frosts this week, which further dried the soil.
• The dry, cold conditions have limited crop growth. Crops are struggling to germinate due to the lack of moisture in the subsoil. Crops that have germinated do not look particularly healthy. Oaten hay crops are reportedly struggling more than other crops, and some farmers have reported that legume crops are lying dormant.
• External demand remains high with lots of enquiry from the eastern states of Australia. Hay supplies in the area are limited and the dry conditions have increased local demand which is strong.
• Cereal and straw prices have firmed this week.
• Cereal hay: +70 ($200 to $270/t). Prices have firmed this week.
• Lucerne hay: +/-0 ($270 to $350/t). Prices remain steady this week.
• Straw: +20 ($100 to $150/t). Prices have firmed this week.

Southwest Western Australia

• After the rainfall last week, South-west Western Australia has received little to no rainfall.
• Crops are looking promising in the region after receiving considerable rain the previous week.
• The improvement in crop growth has eased the demand for fodder in the region. It is reportedly increasingly difficult to source fodder with the export market is supporting the 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

• North-west Tasmania has seen some substantial rainfall this week. Smithton recorded around 54mm, Cressy 47mm and Launceston 39mm. There were also some light frosts reported.
• The heavy rains have caused some waterlogging and ruined some winter crops, however the damage is not too extensive or unusual. Tasmania has seen great grass growth this season and it appears to be fairly green.
• There is high demand for fodder in Tasmania this week and it is becoming increasingly difficult source. Silage is being moved from Sassafrass, while grass and straw are being supplied by Nile and Evendale. Lucerne supplies are limited and difficult to source.
• Pasture hay prices have firmed 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: +5 ($140 to $200/t) Prices remain steady this week.