Grain – Hay Report – 25 July 2013

International & National Summary – Grain:

• As each week ticks by for the northern hemisphere 2013 wheat, corn and soybean crops, another chink is chipped off prices. This reflects growing confidence that larger global crops and rebuilding of grain stock levels over the course of 2013/14 remains the most likely scenario for second half 2013.
• For wheat, northern hemisphere harvest is well and truly under way and the crop is almost in the bin (spring wheat to come in Aug/Sept). Corn is going through its critical pollination/tasselling stage and so far so good with sufficient moisture despite hot weather. Soybeans have the longest journey to go before harvest, so remain vulnerable for a few more weeks yet. The “weather market” will hover in the background over August-September till the 2013 crops become more secure. With this uncertainty, the market will retain its volatility.
• Grain prices will more than likely be lower in three months time, provided “Mother Nature” delivers average weather over August-Sep, and this remains the main caveat on where the market will head. Black Sea exporters are selling their new crop into the Middle East and North African markets, at discounted prices to US and Australian prices. The lower grain prices are drawing in demand with China buying more wheat from Australia and US in the last week.
• Local crops in Australia are advancing well for this early in the season. Good rains in the past week through WA, SA, Victoria and southern NSW have kept the crops on track for average yields at this stage. As always, it will be the spring time weather which really sets the yield.
• Old crop supply of feedgrains remains tight on the east coast of Australia due to strong feedlot demand and an active export program. For that reason, we may not see the full reductions in grain prices on the east coast until our new crop arrives in Nov/Dec. A message out of this is don’t assume supply will be available freely from August-October unless you have had discussions with your feed supplier about your requirements. There may be price spikes in this period if users are caught short.
• For the last week, the local grain market traded about $5-10 lower across Australia but sorghum lost more like $20-25.
• The most important issue for dairy farmers is not trying to pick the bottom of the 2013/14 grain market, but to manage their margin-over-feed-cost risk and make a start on covering their forward grain needs if the quoted prices allow them to make a margin, taking into account the 2013/14 milk pricing which has been announced by the milk processors over the last month.

National Summary – Hay:

• Fodder prices remain unchanged in most regions this week. Prices have remained steady over the past few weeks, and hay traders are indicating demand has started to ease slightly, due to the lack of supply and high cost of fodder. Spring is only a month away and a lot of buyers are considering their options and their budget before purchasing fodder.
• Fodder supplies are low and bulk lucerne is very difficult to find, although hay traders indicate they are still able to source small quantities of cereal hay and straw for new buyers.
• In 2013 buyers who maintain a relationship with their hay supplier have generally been able to source fodder and avoid paying the high spot market prices. Now, as we are heading toward the 2013 fodder harvest is the right time to start thinking ahead about fodder requirements in 2014. Fodder is currently in short supply and we believe that there will be very little carry over fodder into 2014. Buyers will again be competing with exporters and livestock owners trying to restock their own on farm supplies. We recommend buyers initiate discussions with suppliers now to avoid a repeat of 2013 fodder shortages and high prices.
• Decent rainfall has been recorded throughout Victoria, particularly the North Central and Wimmera-Mallee, and there are reports of some growers turning fodder on to the market that they had initially retained for their own use.
• Buyers are looking to alternative fodder sources such as almond hulls, which can be blended with straw in place of cereal hay. Delivered to Victoria the price for almond hulls varies from $115-$140t depending on the location.
• Queensland conditions this year were favourable for peanut hay and some buyers have used this to make up the shortfall in place of cereal hay or lucerne. Prices were around $220 – $230/t on farm but supplies are now getting low.
• In Queensland feedlots and dairy’s remain active buyers. New season hay should come onto the market as early as late August or September and will provide some relief for buyers who are struggling to source fodder presently.
• With freight adding a large cost to fodder prices, it is worth considering the quality of the product being purchased. It might work out more cost effective to purchase higher-grade oaten hay at a higher price than to pay freight on lower grade fodder. Remember to always get a fodder quality analysis before purchasing fodder.
• The season in WA has dried of considerably over the past few weeks. Although there was patchy rain across the state over the past week most are forecasting reduced crop yields, particularly in the eastern wheat belt where it is very dry. There will be serious concern for the fodder season ahead in WA if there are no substantial rain events in the near future.
• Tasmania has only recently recorded decent rainfalls and the state is very dry for this time of year. There is little fodder available and buyers are seeking whatever feed they can to get by.
• Most areas of QLD remain very dry and fodder has been sourced from as far away as Central SA and southern Victoria to supply desperate buyers through the region. Areas that have access to water and can bale lucerne have been selling their hay straight behind the baler.
• Reports of graziers in south west Victoria, South East South Australia and the Wimmera-Mallee turning livestock onto winter crops and pastures initially intended for hay could be an indication that fodder shortages might be set to continue into 2014. This will depend on the season, particularly rainfall events in late winter and early spring.

This report has been commissioned by Dairy Australia to provide an independent and timely assessment of grain and hay markets in each dairying region. It should be remembered that actual prices may vary for quality or other reasons. All prices are quoted are exclusive of GST.

The information in this report is collected and disseminated with due care and attention to its accuracy, but Dairy Australia accepts no liability if, for any reason, the information is inaccurate, incomplete or out of date.

Notes: Prices are estimates based on delivery to dairy farms with allowance for freight, storage, and marketing costs, but exclusive of GST. Wheat prices are for the relevant stockfeed wheat available in a region (ASW, AGP, SFW1 or FED1) and F1 for barley.

Notes: Hay prices are delivered, GST exclusive based on shedded hay without weather damage, of good quality and colour. It should be noted there is a wide variation in quality for hay, so prices are indicative for a mid-range product.

• Mareeba July rainfall: 9mm (Ave: 6.4mm).
• YTD: 710mm (Ave: 732). Rainfall for this time last year was 816mm.
• 9mm in most places in the tablelands.
• Wheat: $ -6 ($373 to $383). Remembering that all the wheat available in warehouse is milling quality wheat. Wheat has come off a bit but Sorghum further still and more favourable due to this.
• Barley: $ -5 ($418 to $428). Supplies are now very distant, as far as Nth West NSW. No local user of barley at present.
• Corn prices $ +10 ($388 to $398). Corn recently came into buying contention from beef feedlots, with sorghum prices escalated. Corn prices will probably begin to drift lower with the sharp drop in sorghum prices.
• Sorghum: $ -25 ($344 to $354). Down on the back of demand dropping off abroad, since CQ is primarily a grain export producing region.
• Keep trying for any local sorghum or corn.
• Even gritting corn may be better than paying road freight up from CQ with sorghum.

• Growers in the region are now preparing for the dry season ahead, taking advantage of good baling weather in the past few weeks to conserve and store fodder. It is anticipated that the strong demand won’t ease in the short term.
• How long the high demand continues will depend on how many livestock station owners can afford to keep. The ability to pay for fodder to feed cattle will play a key role in this decision.
• Rhodes grass Hay – Steady- ($265-$285): Supplies of hay are lower than usual, after a dry wet season; however the quality is good as baling conditions have been favourable.

• Toowoomba July Rainfall: 26mm (Ave: 30mm).
• YTD: 893mm (Ave: 426mm), compared to 470mm this time last year.
• Eastern Darling Downs had a very promising 20-30mm this week, not enough to delay any planned watering of dairy fodder crops.
• Wheat: $ -19 ($324 to $334). Any wheat that is on offer now would be of milling quality and therefore pricey.
• Feed Barley: $ -3 ($343 to $353). Prices marginally lower but it won’t make any difference, barley now has to be brought up from the Moree area of NSW.
• Corn $ +10 ($340 to $350). Corn has recently come into buying contention from beef feedlots when sorghum prices escalated.
• Corn prices will now probably drift lower with the sharp drop in sorghum prices.
• Sorghum: $ -24 ($285 to $295). Strongly down on world feed grain prices going lower. SQ sorghum prices expected to be governed by export bidding now, rather than any hurried buying for uncovered demand through to next barley crop.
• If wet sorghum can be found for the right discounted price, it can be blended with dry grain.
• There are still many downs corn crops still on the stalks with this, picking will be delayed.

• Demand remains consistent from feedlots and the dairy industry, and prices are unchanged this week.
• There was a big peanut harvest in Southern QLD this year, and the dry conditions at baling gave growers a chance to make good quality peanut hay. For some buyers this has been a cheaper fibre source with the added benefit of protein at around 11% and reasonable ME levels. Peanut hay has been retailing for about $220t but is now in short supply.
• Cereal Hay – Steady – ($330-$360): Cereal hay is in particularly short supply nationally and is being freighted big distances to meet demand. Planting of cereals intentioned for hay was slightly up this year and baling new season hay could begin as early as August when the weather is better suited to curing hay.
• Lucerne Hay – Steady – ($400-$450): Local new season lucerne should become available as early as September. However with lucerne stands still recovering from floods earlier in the year supply is likely to be down and therefore prices may not come down too much in the short term. The horse and hobby markets are the most active buyers presently and paying $12-15/bale for premium quality lucerne where it is available.
• Straw – Steady – ($120-$150): Feedlots remain active buyers. The quality was good but there isn’t a lot of reserve stock available.
• Pasture – Steady- ($180-$200): There is strong demand from lot feeders and station owners for pasture hay, which is driving the price up. Buyers are attempting to secure enough rations for winter.

• Lismore July rainfall total: 97mm (Ave: 35mm).
• YTD: 1017mm (Ave: 823mm), compared to 941mm this time last year.
• North coast has 5-15mm of rain this week, enough to keep winter pastures growing.
• SFW Wheat: $ -9 ($367 to $377). Best to use sorghum if you can handle it. If wet sorghum is offered at enough of a discount, consider using it with a blended drier grain.
• Feed Barley: $ -3 ($391 to $401). Prices are low, however this makes little difference. Barley has to be bought up from the Moree area of NSW.
• Corn $ +10 ($380 to $390). Corn prices will gradually decline with the sharp drop in sorghum prices unless holders withdraw commodity for sale, worth keeping an eye out for any local sorghum or corn, particularly if stripped late.
• Sorghum: $ -25 ($304 to $314). Sorghum is the grain to use now with corn barely coming into contention due to price.
• Sorghum bought from the downs is the cheapest mainstream grain; coastal dairy farmers should keep in regular contact with the coastal summer crop grain growers.
• Best opportunities at the moment swing around from the use of high moisture sorghum or corn.

• Trading activity has started to increase with pasture growth slowing. Fodder supplies are very low locally and hay is becoming hard to source.
• Cereal Hay – Steady- ($280-$320): Cereal hay is very difficult to source at present. New season hay from Southern QLD could be available as early as August, if baling conditions are suitable.
• Lucerne Hay – Steady – ($350-$400): There is very little lucerne available locally or in other supply regions throughout the state. Hobby farmers are very active buyers presently and due to demand small squares have increased to $14/bale.
• Pasture Hay – Steady – ($150-$170): With more graziers supplementary feeding cattle this year there has been steady demand for pasture hay. The quality is good but supply is low; therefore if we see a cooler winter it will quickly become hard to source pasture hay locally.

• Forbes July rainfall: 39mm (Ave: 39mm).
• YTD: 353mm (Ave: 264mm), compared to 493 this time last year.
• Local grain crops had an excellent rain worth 26mm this week.
• SFW Wheat: $ -5 ($253 to $263). Some concerns that NNSW grain in storage may run out before new season grain starts to flow through in October.
• F1 Barley: $ -5 ($242 to $252). Wheat still cheaper on unit of energy cost.
• Corn $ +0 ($375 to $385). Supplies still being held in central, northern and Riverina sheds. Buying currently slow.
• Sorghum $ -20 ($323 to $333), massive drop in sorghum prices following lower export prices.
• Sorghum looks relatively cheap compared to 2 weeks ago but many growers want to hold onto it until the price consolidates.
• Haymaking for pasture paddocks possible but just a little too early for hay booster dressings of NPK to go out.
• Extra nitrogen fertilizer being applied to crops to boost yields with the expectation of more moisture to crops over spring.

• There is strong demand for fodder through the central west but supply is limited. The key buyers are hobby farmers and chaff mills. Bulk hay, particularly of lucerne in big squares is now in very short supply.
• The season is shaping well for a good fodder harvest after steady rain in the last few months.
• Cereal hay – Steady ($250-$300): There is very little supply locally in large squares. Cereal hay in small squares is in very short supply as well but still trading at $8-12/bale to horse and hobby farm buyers.
• Lucerne -Steady – ($350-$400): There is very limited second grade hay available for trading which is keeping the price of lucerne high. Good quality small square bales are steady at around $11-12/bale.
• Straw – Steady ($115-$135): The Central West is not traditionally a big area for straw and there is not a huge supply.
• Pasture hay – Steady – ($145-$155) – Low grade pasture hay is being snapped up by the livestock market for cheap forage where it is available. Supply is very limited as it is not a regular market for the region.

• Bega July rainfall total: 6mm (Ave: 46mm).
• YTD: 342mm (Ave: 409mm), compared to 651mm this time last year.
• No rain in the Bega valley this week.
• SFW Wheat $ -5 ($277 to $287), down but all other feed grain prices are also down. Wheat maintains its relative advantage for cost per unit of energy.
• Feed barley $ -3 ($264 to $274), prices are too close to wheat at this time to warrant any particular interest. More interest for home mixing lies with wheat.
• Triticale $ -5 ($276 to $286). Following other feed grains down.
• Oats: $ -5 ($293 to $303). Still being fed to sheet on Monaro but in other southern areas sheep now have enough grass.
• Winter pastures are making good progress helped by the absence of frosts near the hills; Riverina incoming winter crops are looking good.
• Expect new season southern barley to start running from western cropping areas in early November.
• Significant use of dairy pellets at this time.
• When new grain harvest starts, expectations are that more dairy farmers will revert to home crushing and mixing of dairy feed.

• Fodder to the Bega Valley is coming from Central West NSW, the Southern Tablelands and the Riverina. It should be noted that supplies in these areas are running very low.
• Available paddock feed, including early sown oaten crops and pastures, is increasing after good rains a few weeks ago and accordingly demand in the region is easing.
• Cereal Hay – Steady – ($280- $320): Prices remain steady due to easing demand.
• Lucerne –Steady – ($350-$400): Buyers are searching further afield to source lucerne and it is in very low supply nationally.
• Straw – Steady – ($160-180): There wasn’t a lot of straw baled in the supplying regions and now there is strong competition from other sectors. High prices are reflecting the lack of supply.
• Tatura July rainfall: 65mm (Ave: 49mm).

• YTD: 232mm (Ave: 275mm), compared to 379mm this time last year.
• Very good rains in the Goulburn and Murray Valleys this week from Echuca through to Yarrawonga.
• Wheat: $ +3 ($280 to $290). Following NSW and other export feed grain markets lower. Dairy farmers currently using wheat should be able to progressively introduce more barley as pastures improve in feed quality and bulk over the next month or so.
• F1 Barley: $ +0 ($259 to $269). Victorian barley prices have been steady for the past month despite a noticeable price decline through NSW.
• Triticale: $ -0 ($269 to $279). At a large discount to wheat and it is worth taking if cows don’t notice the difference. It is best to shandy the grain on changeover.
• Feed Oats: $ +3 ($240 to $250). Milling and racehorse oats are holding firm but feed oats are slipping in price, as fewer sheep in Strathbogie’s need grain oats as a paddock supplement.

• Demand for all fodder types remains steady and prices are firm. The high cost of fodder is encouraging buyers to look at other options such as almond hulls and palm kernel meal. Almond hulls can be sourced easily and are being delivered into the region for $115-$125/t.
• Demand for straw has picked up in the last few weeks and remains steady this week.
• Interest in low grade or weather damaged hay remains strong but there is very little available.
• Cereal hay – Steady – ($330-$350) – Cereal hay is still available from traders but supply is low and as a result prices are remaining firm.
• Lucerne hay – Steady – ($350-$400) – Supply is now very low and there are no reports of uncommitted lucerne locally. Small squares are also hard to source and are trading at around $14/bale on farm.
• Straw – Steady – ($130-$170) – Demand for straw has picked up in the last few weeks and remains steady.
• Vetch – Steady – ($340 – 380) – Vetch is very difficult to source anywhere in the country.

• Sale July rainfall: 19.4mm (Ave: 41.2mm).
• YTD: 339.4mm (Ave: 324.9mm), compared to 411mm this time last year.
• Some heavy rains received in the region with 30-40mm in West Gippsland while East Gippsland received less than 5mm.
• SFW Wheat: $ -5 ($312 to $322). Prices lower following sharp drops in feed grain prices in Queensland and Northern New South Wales. Wheat for feed is now a liquid market in Victoria as most animal feeders favour wheat in the wet conditions.
• Barley: $ +0 ($301 to $311). Barley still remains an option as prices remain steady and at an $11 discount to wheat maybe useful to buy for October delivery.
• Triticale: $ -5 ($307 to $317). The discount to wheat may widen over the next month as many current holders of Triticale are looking to sell as this year crop’s prospects continue to improve.
• Feed Oats: $ -3 ($250 to $260) Feed oats are slipping in price as fewer sheep need grain oats as a paddock supplement anywhere in Victoria.
• Plenty of moisture underfoot and wet paddocks will convert to abundant feed when spring arrives.
• The season seems to be panning out well for dairy farmers as many are describing it as a typical late winter for Gippsland in a good season.

• Demand for fodder remains steady across the region and prices are unchanged this week.
• Fodder supply is very low and the high cost of freight into Gippsland is encouraging buyers to seek alternative fibre sources such as palm kernel meal, and almond hulls, which can be delivered into the region for around $130-140/t.
• Cereal Hay –Steady- ($350-$400) – Supply of cereal hay is low but it is still accessible. The high cost of cereal hay is prompting buyers to look for alternatives like almond hulls and straw.
• Lucerne Hay – Steady – ($380-$420) – Lucerne hay is in vey short supply nationally.
• Vetch – Steady– ($400+) – There is very little available nationally.
• Straw – Steady – ($200-$220) – There is still some straw available being sourced from Central Victoria and the Wimmera-Mallee. Demand for straw is steady as buyers seek functional fibre and cheaper alternatives to cereal hay. However the freight back to Gippsland is adding significant cost for buyers who are advised to carefully calculate costs based on their nutritional requirements when looking to freight straw.
• Pasture – Steady – ($280-$300) –Very short supply of any grade pasture hay across Southern Australia, including the usual local supply of round bale pasture which has been cleaned out.

• Port Fairy July rainfall: 117.6mm (Ave: 93.9mm).
• YTD: 437.6mm (Ave: 401.5.5mm), compared to 460mm this time last year.
• Southern dairy areas had another 20mm this week, as weather conditions are both wet and cold.
• SFW1 Wheat: $ -5 ($281 to $291). Prices lower following sharp drops in feed grain prices in Queensland and Northern New South Wales. Wheat for feed is now a liquid market in Victoria as most animal feeders favour wheat in the wet conditions.
• Feed Barley: $ +0 ($253 to $263). Victorian feed barley prices have been steady over the past month. Wheat still remains the main focus in the winter months.
• Triticale prices $ -5 ($275 to $285). Prospects for incoming Triticale are improving and subsequently current holders of the crop are looking to sell.
• Feed oat $ -3 ($231 to $241) Feed oats are slipping in price as fewer sheep need grain oats as a paddock supplement.
• Paddocks are wet however there is very little feed in short sappy grass.
• Many paddocks are unusable at this time due to possibility of pugging and then the requirement of levelling later.

• Demand has started to ease a little in South West Victoria for all fodder types. As per other dairy regions buyers are looking to cheaper alternative feed sources like almond hulls, which are trading for around $120-130/t, delivered into South West Victoria.
• Prices also remain steady for now and there is unlikely to be much movement until new season hay comes onto the market in spring.
• Cereal – Steady- ($330 – $360): It is difficult to source cereal hay at the moment, where there is cereal hay available it has mostly come from the exporters and is high to premium grade hay therefore sellers are asking a premium price.
• Lucerne – Steady – ($350-$400): The usual suppliers of lucerne from North Central Victoria and South East South Australia are very low or completely out of stock.
• Straw – Steady – ($130-$160): There is still some straw available but demand is dropping off. High-grade barley straw is priced between $120-$140 ex farm; wheat straw is about $100-$110 ex farm.
• Pasture hay – Steady – ($260 – $300): Pasture hay is in short supply and very difficult to source across the state.

• Mount Gambier July rainfall: 138.6mm (Ave: 99mm).
• YTD: 371.9mm (Ave: 396mm), compared to 382.2mm this time last year.
• The mount Gambier region had another really heavy rain this week with 70mm in the area.
• Wheat $ -3 ($293 to $303). Dairy farmers are still demanding wheat for higher energy to the cows in the winter months. Best prospects for cheaper wheat in the region will come from any weather damaged grain that may be available.
• Feed barley $ +0 ($269 to $279). Plenty of feed barley available at the moment. Dairy farmers still sticking predominately to wheat at this time of year.
• Triticale $ -5 ($275 to $285). Current holders of triticale are looking to reduce old season stocks as the new season prospects continue to improve.
• Oat prices $ -5 ($225 to $235) Most of the sheep areas have enough new feed that they do not currently need any grain oat supplements.
• Incoming crops in western Victoria and southeast South Australia as well as the Murray Mallee are improving with June and July rains. Growers are hoping the wet winter will harbour a wet spring and a good finish.

• Rain has been patchy through South East SA but in general the season is shaping up well, despite a late start.
• Fodder prices remain steady this week and demand has eased as farmers are now starting to graze winter crops and pastures. As some of these crops are intentioned for hay follow up rain will be essential for a good fodder harvest and to avoid another fodder shortage in 2014.
• Cereal –Steady- ($300-$330): Cereal hay is becoming very difficult to source.
• Lucerne – Steady – ($320-$360): Supply is becoming very low through the region.
• Straw – Steady – ($140-$160): Trading has picked up however there is little in excess throughout SA.
• Pasture – Steady – ($250-280): Pasture has been snapped up early by the livestock buyers and is becoming harder to source now.

• Murray Bridge July rainfall: 63.6mm (Ave: 34.9mm).
• YTD: 242.2mm (Ave: 189.6mm). 302.9mm this time last year.
• South Australian crops are looking really good with another good rain for central district grain and dairy areas. Murray Bridge received an additional 37mm of rain this week.
• Wheat $ -5 ($305 to $315). Prices came down but wheat remains the grain to but for dairy farmers at this time of year.
• Feed barley $ +2 ($265 to $275), It is now a very wide price margin to wheat and continuing to increase. Such a price discrepancy encourages feed barley to be used on dairy cows. Attractive buying for a September delivery when the colder conditions have passed.
• Triticale $ +0 ($280 to $290). Supplies limited but it remains a good buy if it can be found at a $10 discount to the wheat price.
• Feed oats $ -0 ($223 to $233). Less sheep demand currently for oats with paddock feed increasing.
• Dairy feed is coming away well now and with better paddock feed there is far less resilience on silage and cereal hay.

• Growers in Central SA are experiencing excellent growing conditions this season and are optimistic about the hay season ahead.
• Prices remain firm and fodder continues to move big distances to fill the supply shortage in Southern Australia. Accordingly fodder supply locally is getting very low.
• Cereal Hay – Steady- ($250-$300) –Where cereal hay is available, quality is very high.
• Lucerne – Steady- ($300+) – Low supply is due to limited acreages and poor results from dryland Lucerne in SA this year. There appears to be no big quantities of Lucerne available anywhere on the domestic market.
• Straw – Steady – ($120-$130) – Any straw on farm is likely to be under contract but demand from the domestic market is fairly quiet at this stage.
• Vetch – Steady ($300+) – Where available growers are asking top dollar for good quality vetch hay.

• Bunbury July rainfall: 87.6mm (Ave: 142.9mm).
• YTD 376mm (Ave: 457mm), compared to 379.2mm this time last year.
• Rains this week very useful for central and southern grain areas. In the eastern wheat belt falls of 5-10mm have just seen crops sown some months ago emerge.
• Wheat: $ +6 ($317 to $327). Wheat remains the desired commodity in the colder conditions.
• Feed barley $ +0 ($292 to $302). Barley prices remain steady with little trade liquidity in the domestic barely market at the moment.
• Triticale $ -5 ($285 to $295). Some triticale from the Esperance region trickling onto the market but not consistently on offer. Not at a bad discount to wheat currently but remains hard to find.
• Oats -10 ($205 to $215). Less demand for oats as it is no longer needed for sheep feed.
• Protein sources are proving to be extremely expensive with Lupins $365 at Perth and a lower $A increasing prices of soybeans.

• Demand for hay is increasing in the key dairy and livestock regions of the state as winter kicks in.
• Parts of WA, particularly the eastern wheat belt have dried off quickly which could compromise their fodder harvest for 2013. Good widespread rain is needed across WA soon.
• Cereal hay – Steady– ($200-$250): Cereal hay prices have increased this week due to the rising demand from the domestic market.
• Lucerne – Steady – ($400-$500) – Demand for Lucerne has increased, supply is running low and chaff mills are active buyers of premium quality hay. The main domestic activity is from local horse markets and prices are peaking at around $470/t on farm.
• Straw – Steady- ($90-$120): There is very little straw available for trading throughout the state. There is some lower grade straw around that didn’t make export grade after being rained on before baling.
• Pasture – Steady ($110 – $130): There seems to be good stocks of pasture hay available to trade.

• Smithton July rainfall: 118.8mm (Ave: 108mm).
• YTD: 3683.7mm (Ave: 475mm), compared to 504mm this time last year.
• North West coast had anything between 15-40mm in another week of good rains for the region.
• Wheat $ -5 ($390 to $400). With the price lowering this week in terms of energy per dollar wheat is a cheap option compared to other alternatives.
• Feed barley $ +0 ($375 to $385). Australian feed barley mainland prices steady with little interest in barley for cows in the colder winter months.
• Triticale prices $ -5 ($363 to $373). With wheat prices down major supply areas southeast NSW and northeast Victoria.
• Oats prices $ -5 ($318 to $328). With enough natural feed available the demand for oats is considerably less.
• Conditions are extremely cold and wet inhibiting pasture growth.

• Fodder supplies are very low in Tasmania and demand remains strong.
• With very limited supplies of fodder throughout Tasmania buyers have been seeking ryegrass straw and any other type of roughage they can source to get through winter. It is very cold and there is very little paddock feed available.
• Cereal Hay – Steady – ($205-$225): Stocks are very low due to lack of production for fodder and high competition in the grain sector.
• Lucerne – Steady – ($300-$350): Lucerne supplies are limited; silage in particular is in high demand but not easy to source.
• Straw – Steady – ($135-$145): Given the dry harvest conditions the quality of straw is high and is starting to move now, with demand at this time of year coming from mainland mushroom growers.
• Pasture Hay – Steady – ($160-$200): The supply of pasture hay low this year.