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Driving Prices Up
- Colder temperatures as winter arrives are increasing demand for pre-contracted winter feed options which are seeing limited lines of fodder rise.
- Northern Victoria and most of South Australia have seen recent rains, but more is needed and it is too early for those rains to have had a downward impact on current fodder prices.
- Cattle producers are looking for higher quality fodder for weaners, and are willing to pay a premium for guaranteed consistency.
- Livestock on farm is still much higher than would normally be at this time of year due to reduced saleyard prices.
Driving Prices Down
- There are still areas of green feed available to livestock, which is reducing, though not eliminating, the need for additional fodder supplies.
- Some rested pastures have now been opened up for grazing in WA and Tasmania reducing local requirement for fodder.
- Feed quality grain remains readily available to farmers at a good price point. Many farmers are buying grains due to concerns regarding the quality of some of the available hay.
- Hay quality is variable; the rain delayed harvest resulted in some coarser low quality hay being produced and some of this is feeding into the market as other supplies tighten.
- The cotton harvest in QLD and Northern NSW continues to have an impact on the transport options in the region, reducing the availability for deliveries of other produce, including on-demand fodder supplies.
- Trade in hay is beginning to pick up as the cooler temperatures are being felt across most regions, especially NSW and Victoria. Frosts are a cause for concern in southern Victoria and Tasmania.
- As well as the on-going issues with the live export trade of sheep out of Western Australia which is still unresolved, farmers in the state are also looking with concern at the Aboriginal Cultural Heritage Act which comes into effect on 1 July 2023 and the possible impact on their farming enterprises.
- The Bureau of Meteorology (BOM) has stated for or June to August, below median rainfall is likely to very likely for much of Australia. June to August both maximum and minimum temperatures are likely to very likely to be warmer than median for virtually all of Australia excluding some inland regions. This forecast is being influenced by several factors including an ENSO-neutral pattern tending towards El Niño in the latter part of the forecast period, and the chance that a positive IOD event may develop in the coming months, as well as longer-term trends
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.