Driving Prices Up
  • Though there has been some rain in Western Australia this has not alleviated the dry conditions which continue to affect availability of feed and are placing fodder supplies in increasing demand. This coupled with a smaller hay production this year is putting upwards pressure on prices in the state.
  • As drier conditions settle in over south west Victoria as well as South Australia the summer conditions are seeing a drying off of available pastures and the push from dairy and livestock producers to ensure good quality supply heading into autumn and winter.
  • Exporters continue to be a player in the market and are looking to fill shipments as well as secure reasonably high volumes of available stock on hand. This is having an effect on export grade cereal prices, with a flow on effect to other fodder lines.
Driving Prices Down
  • Grass continues to grow across most parts of the east coast and is supplying good feed options for herds as well as opportunistic fodder production.
  • Some lines of fodder are seeing a reduction in cost at the lower end of the quality scale which is bringing down the overall pricing point. This is especially true in cereal lines as exporters still support a floor price for higher quality product but lower grade is moving at reduced prices.
  • A good hay season this year in parts of the eastern states has seen hay sheds filling, with buyers now having more availability and a lessening of the supply constraint.
Local News
  • As the dry conditions continue in WA the pressure on sheep flocks and the future of the industry in the face of the live export market issues are affecting the future plans of graziers, with many choosing to reduce the numbers expected to lamb in the spring. This will have a flow on effect to fodder demand.
  • The Bureau has stated El Niño persists, although a steady weakening trend is evident in the oceanic indicators. International climate models suggest the central tropical Pacific Ocean will continue to cool in the coming months. We are expected to return to neutral El Niño–Southern Oscillation levels in the southern hemisphere in autumn 2024. The typical drying influence of El Niño on Australia’s climate usually reduces during summer, especially in the east; however, below median rainfall is still often observed in north-east Australia. As we have seen this year and through historical data, high-impact rainfall events can occur during El Niño years, particularly during October to April when severe storm frequency peaks.
  • Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.