Grain – Hay Report – 29 August 2013

International & National Summary – Grain:

• International grain markets were swept up in the emotion of traders focussing on the dry and hot US Midwest weather forecasts and how this may impact the size of the US corn, and to a larger extent, the size of the US soybean crops. This saw international grain markets push higher over the past week.
• Given both the US corn and soybean balance sheets are historically tight after last year’s drought; grain users are banking on the coming harvest to replenish stocks. However current weather conditions are critical to determining the total crop size especially in regards to soybeans where the crop is later than normal. Normally the bulk of the US corn harvest will be underway by mid-September, and soybeans by mid-October.
• Currently the expectation is still for US corn production to be at record levels this year despite the revisions lower to yields. This may create some further weakness in international grain values once it hits the market.
• Good harvests in the EU and Black Sea which is now hitting the market continue to see them win business on any importer appetite over more expensive Australian and US prices.
• South America is proving an area to watch this year given old crop supply is tight there and Brazil is currently importing from the US rather than Argentina. Brazil received some frost over the past weeks damaging production and parts of Argentina are dry. But there is a long way to go before the harvest in Nov/Dec/Jan.
• The A$ remains around US$0.90 which has kept Aussie grain values supported vs declining international values that trade in US$.
• In Australia, dryness in northern NSW, Qld and north eastern areas of WA are seeing premiums demanded there for new crop. Southern NSW, Victoria and SA remain on track for good yield prospects and are currently trading a $20-30/t discount to the drier areas of Australia.
• There is not a lot of change in the old crop situation. Supply of feed product remains very tight and thinly traded, hence if you are requiring feed over the next few months it may be a good idea to secure start hunting around as it may take time to source. Although a number of grower brokers have indicated some grain has been coming out of on-farm storage recently.
• The market structure in Australia currently indicates old crop prices will be thinly traded with values maintained until new crop harvest provides some supply relief. Then we may see some pressure to the downside in the southern areas if the spring turns out favourable to production. However the drier areas of north eastern Australia and parts of WA may maintain a premium to Southern NSW, Victoria and SA.

National Summary – Hay:

• The fodder season has begun in limited areas across the country (WA and northern NSW and southern QLD).
• Demand for hay across the country is continuing to slow down with very little demand for protein rich hay sources.
• Cash flow is one of the key drivers for decreasing activity in the hay market, particularly in the dairy sector.
• All regions are indicating that pasture hay supplies are now more or less depleted. Despite strong demand in some regions the product there is very little of it being traded currently, seeing prices remain steady. In some areas while pasture hay reserves may remain, they are largely being held as drought reserves and are not for sale.
• Straw is still in demand, particularly in South West Victoria and South Eastern South Australia however is increasingly hard to source. It is mostly being used to supplement high moisture pastures
• The major dairy regions of Victoria, being SW Vic and the Goulburn Valley are seeing a decrease in demand for fodder. Local reserves are low and fodder is typically being sourced from well outside these regions. Suppliers in each of these areas are now saying that they have depleted all of their supplies.
• Many fodder suppliers across the east coast of Australia are now ‘cleaning’ out any reserves in anticipation of the approaching spring. This may offer an opportunity to some buyers. This activity has largely been completed in SA and WA with very spasmodic trading still occurring.
• Many fodder growing areas of SE Australia, from SA to Victoria and southern NSW are waterlogged. Many growers are considering the use of aircraft to apply fertilisers, or are waiting for the current dry spell that is forecast for this week to take affect before fertilising paddocks. There is a general feeling that although some paddocks have patches of waterlogging, at this stage there is potential for better than average hay yields in the coming spring.
• Southern QLD and northern NSW have experienced sever frosting over the last week with some cereal crops now earmarked for hay production that would have normally been grown for grain. This hay production is expected to begin in the next week.
• With good water allocations available for the summer cropping season it is likely that there will a solid fodder growing season in the Goulburn and Murray Valley of Victoria as well as in Gippsland.
• Feedlot demand appears to have eased over the past week in Queensland, resulting in a softening of demand for straw.

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 August rainfall: 0.6mm (Ave: 10.1mm).
• YTD: 711mm (Ave: 742.5). Rainfall for this time last year was 834mm.
• Patches of rain for Atherton this week.
• With the region in irrigation mode for production of cow feed, it hasn’t made any difference to irrigation intervals.
• Wheat: $ +5 ($377 to $387). All of the remaining wheat is now in the human consumption categories. Not prudent to use the current wheat available on the market in home mixes.
• Barley: $ -10 ($405 to $415). Supplies are extremely low at the moment. Any remaining stocks will be brought in from South West QLD or Northern NSW.
• Corn prices $ -5 ($378 to $388). Seems there is only a few buyers in the market for feed corn. Most feed manufacturers are running strongly on sorghum.
• Sorghum: $ +0 ($341 to $351). Steady in these Northern areas due to lower exporter interest. Domestic demand is higher in Southern Queensland.
• Queensland July milk production was down 3.0 per cent on the July 2012 litres.
• At price ranges in the data collected, sorghum stands out as a clear energy grain to buy if it needs to be trucked from CQ. Local options for substandard feed corn samples need to be explored to avoid any freight cost as far as possible.

• Currently seeing very low volumes of fodder traded in the Atherton tablelands.
• 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.
• 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.
• Other classes of fodder, including straw and cereal hay may make their way into the region once bailing begins in QLD. Freight will remain a deterrent to any outside fodder being bought into the region.

• Toowoomba August Rainfall: 5mm (Ave: 34.5mm).
• YTD: 899mm (Ave: 460.7mm), compared to 470.2mm this time last year.
• No rain in southern Queensland this week for the second consecutive week.
• Wheat: $ +8 ($326 to $336). Stronger prices as incoming crop prospects deteriorate. Yield penalties look inevitable.
• Feed Barley: $ -14 ($326 to $336). Price reduction follows lower prices elsewhere in Australia.
• Corn $ -5 ($330 to $340). Buyers are more interested in sorghum than corn so the margin has narrowed. Minimal buyers in the corn market currently.
• Sorghum: $ +6 (303 to $403). Strong demand for the commodity from local intensive livestock enterprises.
• Further frosts are on the cards with fine clear weather.
• Expecting new season Barley to be significantly lower than wheat and to provide good buying for dairy farmers.

• Cereal Hay – Steady – ($280-300): Cereal hay is in particularly short supply nationally and is being freighted big distances to meet local needs. However slightly weaker demand resulting in a drop of $20/T on last week.
• Lucerne Hay – Steady – ($350-$400): There is very little lucerne hay being traded in the region with the main buyers of any volume being the horse sector. New season lucerne should become available as early as September.
• Straw – Steady – ($140-$180): Feedlots remain active buyers. The quality was good but there isn’t a lot of reserve stock available.
• Pasture hay has been extremely hard to source in the Darling Downs. Accordingly there has been limited trade and no indication of change in the current price for the small volumes being traded.
• There have been significant areas of frost damage to northern NSW cereal and oil seed crops, with significant volumes of canola, barley and wheat likely to be cut for fodder in the next week. This is likely to have a downward impact on prices due to the large volumes that are traded from that region into the Darling Downs region.

• Lismore August rainfall total: 2.6mm (Ave: 47.7mm).
• YTD: 1024mm (Ave: 871mm), compared to 950mm this time last year.
• A further week without rain in the region is restricting growth of pastures on the north coast.
• SFW Wheat: $ +8 ($369 to $379). With frost damage to stressed early crops on South Western QLD and North West NSW, wheat prices are stronger.
• Feed Barley: $ -10 ($376 to $386). Not useful or efficient, at any price above wheat.
• Corn $ -5 ($375 to $385). Steady, any locally produced feed corn will be cheaper than the prices in our price band. Very few buyers in the market for feed corn but will be worth watching once harvest starts.
• Sorghum: $ +5 ($322 to $332). Cheapest feed grain if brought down from the Downs or from L-Plains. Strong demand for the commodity and further uncertainty to incoming wheat crop adds to sorghum accumulation.
• Prospects for incoming Downs crops are OK but worsen substantially for South Western WLD winter crops.
• Grain requirements for the region are coming from summer grains produced locally, or on the Downs.

• Cereal Hay – Steady – ($280-300): Cereal hay is in particularly short supply nationally and is being freighted big distances to meet local needs.
• Lucerne Hay – Steady – ($350-$400): There is very little lucerne hay being traded in the region with the main buyers of any volume being the horse sector. New season lucerne should become available as early as September.
• Straw – Steady – ($140-$180): Small amounts of straw are been traded, with the main buyers feedlots and to a lesser extent dairy farms.
• Pasture –Steady – ($160-$180): Pasture hay has been extremely hard to source however where it is being traded prices remain steady compared to last weeks. It is anticipated that any remaining reserves of pasture hay will soon be depleted entirely.
• There have been significant areas of frost damage to northern NSW cereal and oil seed crops, with significant volumes of canola, barley and wheat likely to be cut for fodder in the next week. This is likely to have a downward impact on prices due to the large volumes that are traded from that region into the North Coast NSW region.

• Forbes August rainfall: 19.6mm (Ave: 38.2mm).
• YTD: 383.2mm (Ave: 302.2mm), compared to 511mm this time last year.
• No rains this week yet local crops are still doing well and have moisture down in the profile.
• SFW Wheat: $ -5 ($238 to $248). Lower for the region as there are good prospects for the size of the incoming wheat crop from the central west region.
• F1 Barley: $ -15 ($206 to $216). Barley supplies through to new crop are comfortable in central west, incoming barley prospects bright and subsequently the price has dropped substantially.
• Corn $ +0 ($365 to $375). Low buying interest from domestic stock feed manufacturers at this time.
• Sorghum $ +0 ($323 to $333). Sorghum stocks are too far away to warrant trade at the moment. Very little local grain to be sourced at the present time.
• Feed grain prices should retreat some $30 a tonne before the next winter crops harvest locally. Probably not the time to forward price, expected grain usage this is uncovered through to Christmas.
• Plenty of grain form old crop in this region.
• Plenty of good quality grazing for cows in this region.
• No concerns yet for incoming crops

• Demand for fodder is continuing to decline as pasture growth increases. The past week has been largely favourable for pasture growth and there are an increasing number of paddocks getting put aside for fodder production in the spring.
• Many fodder suppliers are continuing to clean stocks in preparation for the new seasons hay coming in. This may present opportunities for buyers.
• The key buyers of fodder are hobby farmers and chaff mills. Bulk hay, particularly of lucerne in big squares is now in very short supply.
• The frost of Northern NSW has not extended far into the Central West of NSW, with most crops still too immature for significant frost damage to occur.
• There has been some trading of lucerne, over the last fortnight, driven in part by hobby farmers and the horse industry, but also in part by dairy farmers topping up supplies.
• Cereal Hay – Steady – ($280-300): Cereal hay is in particularly short supply nationally.
• Lucerne Hay – Steady – ($330-$420): There is very little lucerne hay being traded in the region with the main buyers of any volume being the horse sector, and a small quantity being delivered to the coastal dairying regions. New season lucerne should become available as early as September.
• Straw – Steady – ($115-$130): Feedlots remain the only active buyers of straw. Quality remains good but there isn’t a lot available.
• Pasture – Steady – ($145-$155): Pasture hay has been extremely hard to source in the Darling Downs. Accordingly there has been limited trade and no indication of change in the current price for the small volumes being traded.

• Bega August rainfall total: 5mm (Ave: 30.6mm).
• YTD: 351mm (Ave: 440mm), compared to 669mm this time last year.
• No rain again this week, making August a dry month for this dairy region.
• More rain is needed on hill paddocks over the next six weeks if there is to be any fodder conservation on the hill paddocks this year.
• SFW Wheat $ -5 ($264 to $274). Prices lower but barley stands out as the energy grain to feed cows over spring.
• Feed barley $ -10 ($234 to $254). Barley sharply down on the lack of exporter interest and adequate old crop stocks.
• Triticale $ -20 ($236 to $246). Not a lot of old crop stocks left but those that have it are keen sellers.
• Oats: $ -20 ($243 to $253). No market for oats currently for all of New South Wales except for colder areas of the Monaro and New England highlands.
• While grass locally is limited by low soil moisture, crops in the south-eastern New South Wales are doing well.
• Southern NSW milk production for July was down 3.5 per cent on the litres delivered in July 2012.

• Fodder to the Bega Valley is coming from Central West NSW, the Southern Tablelands and the Riverina and is in very short supply. Demand has started to slow largely due to the high prices for hay.
• the past week saw cereal and lucerne fodder prices reduce by $20/T with straw and pasture remaining steady. This can be attributed to a decrease in demand, the approaching spring growing season and a growing reluctance of dairy farmers to continue to pay high prices for fodder,
• Cereal Hay – Steady – ($300-$330): Cereal hay is in particularly short supply nationally and is being freighted big distances to meet local needs. However slightly weaker demand resulting in a drop of $20/T on last week.
• Lucerne Hay – Steady – ($330-$400): Lucerne is being sourced from Central West NSW, however very little is being traded in the region due to most dairy farmers having ample pasture available. The main buyers of any volume are the horse sector. New season lucerne should become available as early as September.
• Straw – Steady – ($180-$230): Dairy producers continue to pay a premium for straw as part of providing roughage supplement for green pastures.
• Pasture – Steady – ($160-$180): Pasture hay is extremely low in supply with many suppliers indicating that they have sold out many months ago.

• Tatura August Rainfall total: 68mm (Avg: 47.8mm)
• YTD: 270.2mm (Ave: 323mm), compared to 421mm this time last year.
• Heavy falls in the dryland dairy areas throughout the week.
• Wheat: $ -5 ($274 to $284). The price drop is common to all of the southern Australia.
• F1 Barley: $ -15 ($229 to $239). Exporter interest in barley for most areas in Australia has declined. Due to commodity availability out of the Black Sea region.
• Triticale: $ -10 ($250 to $260). Triticale needs to be closer to the barley price to sell at this time. Mainly very small parcels trading. Dairy farmer can take this at a discount and bin it with wheat without any risk.
• Feed Oats: $ -15 ($195 to $205). No demand for feed oats or milling oats at all currently.

• Fodder trading slowing now as more winter and early spring feed becomes available.
• Limited amounts of early cut silage will begin in the next week once paddocks dry out and it is possible to move machinery in. There has been some localised flooding, although no significant damage has occurred with the main effect being a waterlogged soil profile.
• Some contractors are reporting delays in applying nitrogen fertilisers, whilst others are resorting to aircraft for cereal and oilseed crops.
• Cereal crops are mostly still immature enough to resist frost damage, however oilseeds are flowering across the region.
• Any fodder that is being traded in the region is coming from North Central Victoria, SW NSW or NW Vic. Local supplies are depleted.
• Cereal Hay – Steady – ($280-310): The falls of last week have now levelled out, although there is very little cereal hay being traded, and any that is, is coming from far afield.
• Lucerne Hay – Steady – ($300-$350): There is very little lucerne hay being traded in the region with the main buyers of any volume being the horse sector. New season lucerne should become available as early as September.
• Straw – Steady – ($115-$155): Dairy farmers remain in need of straw for usage as roughage for cows grazing on high moisture content pastures. There is some speculation that a declining fruit industry in the Shepparton region may have a downward pressure on straw prices where it is used as mulch (lower quality grades) over summer. This will be magnified if there is a significant grain harvest through the region and southern Riverina of NSW.
• Pasture Hay – Steady – ($220-$250): Pasture hay is extremely hard to source in the Goulburn and Murray Valleys. There are limited supplies available at retail merchants at greatly elevated prices than reported here, however the bulk of this fodder is purchased in very small quantities, ie trailer loads, by hobbyists and lifestyle farmers.
• Sale August rainfall: 31.2mm (Ave: 46mm).
• YTD: 384mm (Ave: 370.9mm), compared to 450mm this time last year.
• Conditions are very wet, but less so in east Gippsland and through the Strzelecki Ranges where slopes help to shed excess surface water. Few dry areas left for cows to feed and shelter.
• SFW Wheat: $ -5 ($307 to $317). The price drop is common to all of southern Australia.
• Barley: $ -15 ($271 to $281). Domestic demand for feed barley remains slow with increased competition from Black Sea barley for exporters.
• Triticale: $ -10 ($287 to $297). Very little remaining stocks of old crop and is only trading in small parcels at the moment.
• Feed Oats: $ -15 ($210 to $220). Very little demand at all currently. Fewer oats now being used on sheep anywhere in South Eastern Australia. There may be a role for some oats in the feed cart in addition to the planned grain ration to help cows cope with cold wet and windy weather and consequent chill factor.

• Gippsland milk production was down 2.0 per cent on the July 2012 litres delivered.
• More grass growing, farmers are able to alter cow-grazing rotations to allow some paddocks to be locked up already for silage and maybe hay production.
• Relative price point to switching to barley for spring and early summer use.

• Demand for fodder has levelled off, all be it at low rates across the region, over the last week.
• Silage production now appears to be only two to three weeks away with paddocks now set aside.
• The irrigation districts are likely to have a high water allocation this summer, which may put downward demand on purchased fodder sources for summer and next autumn.
• There are marked differences in prices being paid from east to western Gippsland with differences up to $100/T for the same product (driven by freight costs).
• Cereal Hay – Steady – ($280-300): Cereal hay is in particularly short supply nationally and is being freighted big distances to meet local needs. Prices are steady to last week with a feeling they may soften further.
• Lucerne Hay – Steady – ($350-$400): There is very little lucerne hay being traded in the region with the main buyers of any volume being the horse sector with bulk loads trading at about $20/tonne lower than the hobby sector market. New season lucerne should become available as early as September.
• Straw – Steady – ($140-$180): Straw is still in demand to be utilised by dairy farmers, though very little is available.
• Pasture hay – Steady – ($280-$330). There remain some supplies of local pasture hay, with some trading occurring between neighbouring properties. It is generally accepted that this hay is of lower quality than pasture hay purchased in from the hay exporting regions of northern Victoria or South Australia, however it is trading at a premium over straw in the same market, and filling the same purpose of providing roughage to cows on high moisture content pastures.

• Port Fairy August rainfall: 183.4mm (Ave: 90.4mm).
• YTD: 634mm (Ave: 491.9mm), compared to 567mm this time last year.
• Still very wet in this area, with a lot of rain coming in this month already.
• SFW1 Wheat: $ -4 ($277 to $287) Wheat prices expected to go much lower by November probably eroding the current premium over barley. Barley is preferred energy grain for spring feeding to milking cows.
• Feed Barley: $ -15 ($228 to $248). Exporter interest is lower with more competition coming from the Black Sea barley exports.
• Triticale prices $ -10 ($260 to $270). Not much around but still very useful as a substitute or wheat extender.
• Feed oat $ -15 ($191 to $201) Fewer oats now being used on sheep anywhere in SE Australia. Good prospects for incoming crops resulting in very little current demand.
• Incoming western Victorian crops are doing very well at the moment.
• The area is extremely wet with flood warnings for lower reaches of the Glenelg and Hopkins rivers. Once the region dries out the feed situation will improve dramatically.
• Good quality hay is till needed and feed growth is improving.
• New feed is very soft and watery.

• Demand for fodder is slowing now with some more pasture and winter feed becoming available for grazing. Lack of cash flow is also a prominent factor in the buyer’s ability to pay for fodder.
• Western district silage season is at least a month away with hay further away. Most areas are still to lock paddocks up, though some early paddocks may have just been selected and fertilised.
• Prices remain steady to slightly lower for most categories of fodder, with limited trading taking place for high protein hays such as lucerne and vetch.
• Cereal Hay – Slight fall – ($260-$300): Cereal hay isn’t available in large quantities but supplies are still available from some of the key traders and exporters.
• Lucerne Hay – Slight fall – ($340-$320): There is very little lucerne hay being traded in the region with the main buyers of any volume being the horse sector. New season lucerne should become available as early as September in the warmer regions of the south west, or from further afield such as northern or north central Victoria.
• Straw – Steady – ($140-$180): Still demand for straw, which is being transported considerable distances. The main users are dairy farmers seeking a roughage source supplement for high moisture content pastures.
• Pasture – Slight fall- ($240-$260): Pasture hay is now mostly unavailable with only very small quantities being traded locally.

• Mount Gambier August rainfall: 168.6mm (Ave: 95.4mm).
• YTD: 554.4mm (Ave: 491.4mm), compared to 554.4mm this time last year.
• Conditions remain very wet in the Lower South East.
• Wheat $ -4 ($275 to $285). Most of the wheat now is for human consumption grades. At current prices barley is favoured for spring cow feeding.
• Feed barley $ -15 ($244 to $254). Price drop related to exporters complete lack of interest at the moment due to competition out of the Black Sea.
• Triticale $ -10 ($240 to $250). It is in short supply but represents good buying within this price range.
• Oat prices $ -15 ($180 to $190) Most of the sheep areas have enough new feed that they do not currently need any grain oat supplements. Price drop is being driven by the lack of demand.
• The failure of summer and autumn rain saw grazing bulk greatly reduced in the region.
• Incoming crops in western Victoria and southeast South Australia as well as the Murray Mallee are improving with July and August rains. Growers are hoping the wet winter will harbour a wet spring and a good finish.
• SA June milk production was down an enormous 13.9 per cent on the June 2012 figures.
• The region is extremely wet but lacking in in grass for cows. What grass there is remains rich in protein but lacking fibre.

• The emerging hay season appears to be promising with good soil moisture and as the days warm up, pasture and crop growth is increasing. The extremely wet August however has impacted on the application of nitrogen fertilisers on fodder and cereal crops with many producers considering the cost of aerial application. This coming week is seen as a slim window of opportunity for ground application.
• Silage production is still 6 to 8 weeks away with early sown ryegrasses likely to be the first paddocks cut. These will then be used for hay production later in the spring.
• Demand for all categories of fodder has slowed significantly. However as supply is also very low there is no significant change in price for any category.
• Cereal Hay – Steady – ($280-300): There is a small amount of cereal hay being traded from the export hay works back onto the local market. This is mostly going to the dairy sector with a small amount to beef businesses.
• Lucerne Hay – Steady – ($300-$320): There is very little lucerne hay being traded in the region with the main buyers of any volume being the horse sector.
• Straw – Steady – ($140-$160): Dairy farms remain the key market with beef producers now ‘holding out’ for spring growth. There is some straw being traded but in very low amounts.
• Pasture – Steady – (NA): With such low volumes of pasture hay being traded or still available in sheds it is not possible to give a reliable quote of current prices.

• Murray Bridge August rainfall: 256.6mm (Ave: 36.5mm).
• YTD: 270mm (Ave: 226.5mm). 361mm this time last year.
• South Australia is shaping up for a very big set of winter crops.
• Wheat $ +0 ($281 to $291). Steady with some strong support for the commodity from exporters. While wheat was preferred in the winter months barley will become a cheaper alternative in the spring and summer period.
• Feed barley $ -10 ($251 to $261). Not a strong demand as exporters meet competition from Black Sea’s grain exports.
• Triticale $ -5 ($250 to $260). Triticale is following wheat down at the moment. Incoming prospects for all crops are good and improving, hence the need to quit old crop stocks ahead of a new harvest. Only very small parcels available currently.
• Feed oats $ +0 ($193 to $203). Less sheep demand currently for oats with paddock feed increasing.
• SA June milk production was down a massive 13.9 per cent on June 2012 litres.
• Cereal hay crops doing well.
• Plenty of quality paddock feed available.
• Export prices significantly lower this week.

• Hay supplies are low with enquiries also low.
• Straw prices remain unchanged. Any straw on farm is likely to be under contract with limited price variation through the season.
• There are some areas that are very wet that may result in lower than average yields in the coming hay season however the vast majority of areas will yield very well and a greater than average hay season is predicted by growers. Waterlogging is mostly causing issues with application of fertilisers.
• Cereal Hay – Steady – ($250-300): The biggest demand for cereal hay is coming out of the Victorian dairy regions who are mostly seeking roughage.
• Lucerne Hay – Steady – ($350-$400): There is very little lucerne or vetch hay being traded. Any sales are to either Gippsland or northern Victoria.
• Straw – Steady – ($120-$130): Straw is still being sought by the dairy markets of SE SA or SW Victoria.
• Pasture hay stocks are low and the price remains unchanged this week. Any reserves that remain on farm are largely under contract or not for sale.

• Bunbury August rainfall: 124.mm (Ave: 115.7mm).
• YTD 558mm (Ave: 573.8mm), compared to 471mm this time last year.
• Rain through south west this week with Busselton receiving 9 millimetres, and Harvey 15 millimetres
• Wheat: $ +5 ($302 to $312). While wheat was the preferred feed over the harvest period it is now uncompetitive against barely leading into Spring and Summer region.
• Feed barley $ -25 ($247 to $257). There is the expectation feed grain prices will drop significantly as harvest approaches despite poor yield prospects within WA. Not as strong demand as exporters from Black Sea’s grain exporters.
• Triticale $ -15 ($250 to $260). Triticale is following wheat down. Despite supplies remaining low triticale is not making any more than feed barley currently. There remains very little on offer at the moment with only small parcels traded.
• Oats -5 ($178 to $188). Less demand for oats as it is no longer needed for sheep feed. Sheep are instead being put into vetch crops in many places reducing the need for oats.
• June 2013 milk production was up 4.8 per cent on the June 2012 litres.
• The important central wheat belt is not doing well, with inadequate soil moisture.
• With very limited soil moisture a heavy rain is needed to prevent a quick finish to the growing season and low yields.
• Dairy pastures are now grazing strongly.

• Fodder producers in the key hay growing regions have had a good start to the season so far and are expecting good yields coming into this year’s harvest.
• Demand for hay is steady on the domestic market; WA hasn’t experienced the spike in demand from the domestic market as seen in other states.
• Export demand appears to be softening with some hay coming back onto the domestic market as a result.
• There is still some 2011 weather damaged hay on the market, at rates well below those quoted here. This is of secondary quality.
• In some marginal areas silage has begun with hay only 3 to 4 weeks away
• Parts of WA, particularly the eastern wheat belt have dried off quickly which could compromise their fodder harvest for 2013.
• Cereal Hay – Steady – ($170-$220): Some of the drier more marginal areas, north of Perth, are only 3 to 4 weeks off harvesting new seasons cereal hay.
• Lucerne Hay – Steady – ($400-$500): There is very little lucerne hay being traded in the region with the main buyers of any volume being the horse or chaffing sectors.
• Straw – Steady – ($90-$120): Very limited demand for straw by any sector. The lack of a strong feed lotting sector during 2013 has severely limited demand for straw.
• Pasture Hay – Steady- (110-$130). There is demand from the horse and lifestyle sector for pasture hay in round bales or small squares. The remains however very limited supply.

• Smithton August rainfall: 279.8mm (Ave: 119.9mm).
• YTD: 699.8mm (Ave: 594.9mm), compared to 668mm this time last year.
• Another 20 to 40 millimetres of rain this past week on north west coast.
• Wheat $ -5 ($355 to $365). Less grain being fed to dairy cows now. Pricing against Barely will favour more barley use in spring and summer months.
• Feed barley $ -10 ($330 to $340). Barley prices are easing at the moment with exporters showing more interest in new crop purchases at present. Currently at a $20 discount to feed wheat and expected to widen out to $25 over the coming weeks.
• Triticale prices $ -10 ($343 to $353). Mainland sellers are keen to quit at current prices in case they go lower.
• Oats prices $-15 ($278 to $388). With enough natural feed available the demand for oats is considerably less. Incoming crops are looking really good and there is plenty of natural feed.
• June milk production was almost steady when compared to the previous year down 0.9 per cent.
• The key has been that Tasmania entered winter with strong swards of grass from summer and autumn growth.
• Tasmanian pastures are in great shape.
• The region is extremely wet at the moment with little tractor work possible. Winter paddock feed is still strong as the paddocks take time to drain.

• Prices for fodder remain unchanged in Tasmania, with moderate demand, and supplies limited.
• There is very little pasture hay available or being traded.
• There is very little lucerne grown in Tasmania in large scale with the bulk of lucerne either traded to the feedlot sector or the horse and lifestyle sector. The horse sector is continuing to purchase small squares, whilst most other sectors have reduced their demand.
• Prices for pasture hay were unobtainable for the past week due to such limited volumes being traded.
• All categories of fodder remain unchanged.