Hay Report – 20 July 2018

National Summary

• We are now halfway through winter and it is interesting to reflect on the season so far.
• Many regions have recorded below average rainfall. This lack of rain has impacted crops in regions such as the Darling Downs, Central West NSW, the Goulburn Valley and Central South Australia. Regions such as Northwest Tasmania, Southwest Victoria and Southeast South Australia have seen some good rainfall and have reported healthy crops.
• These dry conditions mean that the demand for fodder has increased this winter and concurrently, supply has become limited. As winter continues, growth is slow, and it is anticipated that demand will continue to be strong.
• The price of cereal hay has firmed in the Darling Downs, North Coast NSW and the Goulburn Valley. Due to changes in the live export industry, straw prices have eased in Western Australia. There are no price changes noted in the Tablelands, Central West NSW and Tasmania.
• 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.
• The demand for cereal hay is strong and is expected to remain. Cereal hay supplies are 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.
• 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

• Drizzle continues to break up dry days in the Atherton region.
• Some hay is being made in the Tablelands, however the weather conditions have impacted the quality and quantity being made.
• Enquiry has increased in the Atherton region with brokers anticipating upcoming demand.
• It is reported Lucerne can be purchased for around $26.5/small square bale (approximately 20kg)
• 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

• The Darling Downs has recorded no rain this week and conditions remain dry.
• Many early planted crops have not germinated and those that have, are struggling to survive. Activity is focused on feeding livestock which is difficult given the limited supply of fodder in the region. Alternative feed sources such as almond hulls and cottonseed are being used and supply is limited.
• Demand for fodder is high in the Darling Downs. There is a shortage of hay in the region. There is very limited supply of cereal hay, lucerne and straw.
• Prices for cereal hay have firmed this week.
• Cereal hay: +45 ($400 to $450/t). Prices have firmed 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

• North Coast NSW remains dry this week and consistent heavy frosts have been reported in the region.
• The prevailing weather conditions continue to dry the soil. Crops are still healthy however are in need of some good rain. Farmers are focusing on feeding stock, which is difficult due to the limited supply of fodder.
• The external demand for fodder remains strong and steady. Supply is limited, and pasture hay is difficult to source.
• Prices have firmed this week.
• Cereal hay:  +100 ($350 to $450/t). Prices have firmed this week.
• Lucerne hay: +50 ($450 to $500/t). Prices have firmed this week.
• Straw: +/-0 ($250 to $300/t). Prices remain steady this week.
• Pasture hay: +15 ($300 to $380/t). Prices have firmed this week.

Central West NSW

• It has been a week of heavy frosts and no rainfall in Central West NSW.
• The Government has announced assistance funds for transport, fodder, for preserving genetics and water infrastructure to support farmers affected by drought.
• Prevailing dry and frosty conditions have impacted crop health. There are no established crops in Central West NSW, and those that have germinated are starting to go backwards. Farmers are putting stock on these crops to graze and take advantage of what is currently available. Reportedly more than 50% of the crops planted this season have failed in this region. 
• Demand for hay is high in Central West NSW, with limited supplies available. Hay is being carted into the region from Victoria and South Australia. This is increasingly difficult to source.
• 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 experienced frosts and strong winds this week. There was no rainfall recorded in the region.
• Crops are struggling in these dry conditions. Farmers who planted early have been able to allow grazing, however it has been reported that these crops are not growing back and that most only have a week left. Farmers are trying to feed as much as they can. Due to high costs and limited supply of hay, alternative feed sources, such as almond hulls, are being used in the region.
• The demand for hay is steady in the Bega Valley. There is a lot of hay being carted into the area, mainly from Victoria and South Australia. It is anticipated that if the dry conditions prevail the demand will increase.
• Prices have firmed this week.
• Cereal hay: +/-0 ($370 to $400/t). Prices remain steady this week.
• Lucerne hay: +50 ($430 to $500/t). Prices have firmed this week.
• Straw: +30 ($170 to $200/t). Prices have firmed this week.
• Pasture hay: +40 ($300 to $350/t). Prices have firmed this week.

Goulburn/Murray Valley

• Goulburn Valley has experienced a dry frosty week, with minimal rainfall reported since last Thursday.
• Crops in the Goulburn Valley region are in need of some substantial rainfall. Growth has stopped and crops are struggling. Reportedly Autumn sewn Lucerne and canola are starting to go backwards.  
• The demand for fodder remains strong in the region, with limited supplies left. Pasture and protein hay are particularly difficult to source.
• Prices have firmed this week.
• Cereal hay: +30 ($190 to $300/t). Prices have firmed this week.
• Lucerne hay: +35 ($300 to $400/t). Prices have firmed this week
• Straw: +5 ($100 to $150/t). Prices have firmed this week.
• Pasture hay: +5 ($160 to $250/t). Prices have firmed this week.

Gippsland

• There has been some patchy rainfall reported in the region, however this has been minimal and not enough to elevate the prevailing dry conditions in central and east Gippsland. This week has also seen light frosts and strong winds.
• West Gippsland appears to have growth, however due to the cooler weather this has slowed. Central and East Gippsland’s crops are struggling. Reportedly, while crops have germinated, growth is minimal. Most lucerne and grass crops have stagnated.
• The demand for hay in the region continues to increase. Calving will occur in the coming weeks and there is a high need for feed. Hay is difficult to source, coming into the region from Western Victoria and South Australia.
• Lucerne prices have firmed this week.
• Cereal hay: +/-0 ($300 to $340/t). Prices remain steady this week.
• Lucerne hay: +40 ($400 to $500/t). Prices have firmed this week.
• Straw: +/-0 ($140 to $200/t). Prices remain steady this week.
• Pasture hay: +/-$0 ($250 to $300/t). Prices remain steady this week.

Southwest Victoria

• Southwest Victoria experienced light frosts this week and did not see rainfall until Wednesday which was patchy in the region.
• Southwest Victoria’s has had good crop growth this season. Farmers in the region are currently using minimal feed and are primarily sourcing cereal hay.
• The external demand in this region remains strong, largely coming from NSW. There is limited protein hay available, cereal and straw are primarily being moved in this region.
• Prices for pasture hay have firmed this week.
• Cereal hay: +/-0 ($230 to $280/t). Prices remain steady this week.
• Lucerne hay: +/-0 ($300 to $380/t). Prices remain steady this week.
• Straw: +/-0 ($140 to $165/t). Prices remain steady this week.
• Pasture hay: +20 ($200 to $260/t). Prices have firmed this week.

Southeast South Australia

• Wednesday’s patchy rainfall broke the dry week in Southeast South Australia. Some light frosts were also reported in the region on Friday.
• Crops in this region are looking good and healthy. The north of the region is drier than the south and in this area growth has slowed.
• Demand remains high in Southeast South Australia, primarily coming from NSW and Central South Australia. There is limited hay available, and most of what is being moved is contractual.           
• Straw and Lucerne hay prices have firmed this week.
• Cereal hay: +/-$0 ($200 to $300/t). Prices remain steady this week.
• Lucerne hay: +25($320 to $380/t). Prices have firmed this week.
• Straw: +35 ($120 to $150/t). Prices have firmed this week.
• Pasture hay: +/-$0 ($180 to $230/t). Prices remain steady this week.

Central South Australia

• It has now been five weeks without rainfall for the majority of Central South Australia. Some areas in the south have received light rainfall, however conditions remain dry. Some light frosts have also been recorded this week.
• Crops in this region are struggling, they are currently lying dormant and lack any bulk. It is reported oaten hay, legume and canola crops are particularly struggling. Some areas in the south of the region have some rain forecasted and farmers are spreading fertiliser in anticipation of this.
• The demand in this region is strong and it continues to increase. This is coming from both within the region as well as NSW and parts of Victoria. Supplies are extremely limited, with most hay spoken for.
• Straw prices have firmed this week.
• Cereal hay: +/-$0 ($200 to $270/t). Prices remain steady this week.
• Lucerne hay: +/-0 ($270 to $350/t). Prices remain steady this week.
• Straw: +10 ($120 to $150/t). Prices have firmed this week.

Southwest Western Australia

• South West Western Australia has received significant rainfall over the week, with areas receiving 20-30mm since Friday.
• There has been some waterlogging reported in the region, however crops are looking good and healthy.  The rain has increased activity with farmers busy aerial spreading and spraying crops.
• As pasture feeds improve in the region, the demand for fodder continues to ease. Due to changes in the live export industry there is more straw now available on the market.
• Straw prices have eased this week.
• Cereal hay: +/-$0 ($180 to $250/t). Prices remain steady this week.
• Lucerne hay: +/-$0 ($450 to $490). Prices remain steady this week.
• Straw: -20 ($80 to 140/t). Prices have eased this week.
• Pasture hay: +/-$0 ($80 to $200/t). Prices remain steady this week.

Northwest Tasmania

• Tasmania has remained wet this week, with a storm passing through the region Wednesday. 
• The wet conditions continue to waterlog crops, however damage is minimal and they are still looking healthy.
• Demand remains strong in the region. Most high quality hay has now been moved and lower quality stock is now being carted.
• There is no price change 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 $200/t) Prices remain steady this week.