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Driving Prices Up
- Supply shortages are well established, and the lack of good quality protein hay is seeing the price of some alternatives continue to rise.
- Demand is strong, notably for this time of year, which is usually pretty quiet, with the known shortfall bringing more end users into the market, especially farmers who traditionally had a locked in supplier who could not meet supply due to weather or flooding events.
- Some quick summer planted crops which were set for additional fodder supplies did not produce the expected volume due to lack of follow up rains.
- Recent heavy falls of rain in Northern and Central Queensland are bringing more livestock producers on to the market looking for supplies.
Driving Prices Down
- Pasture growth continues to look promising in some of the eastern states, most especially in Victoria, supplying good quality green feed for dairy and livestock herds. Parts of Gippsland and the South West are producing more hay than was expected. Western Australia is also seeing an above average season in silage and hay production.
- There is an abundance of feed grain options due to the bumper harvest combined with some adverse weather conditions leading to a downgrade of some grains.
- Silage production has been quite good across parts of the country, which is helping to fill some fodder shortages.
- Continued clear conditions across some of the better hay producing regions have allowed for additional cuts and better quality product, however rainfall is sporadic and is leading to some pasture die back.
- Road and rail infrastructure continues to show the strain from the bumper grain harvest as it moves through the states. Contractors are unable to meet some requests due to long delays at receival sites preventing drivers being available for other cartage operations.
- The Bureau of Meteorology (BOM) states that La Niña continues in the tropical Pacific, but oceanic indicators have weakened since their peak during spring 2022. While ocean temperatures have eased from La Niña thresholds, the atmosphere has yet to respond, and remains La Niña-like. La Niña typically increases the chance of above-average rainfall for northern and eastern Australia during summer.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.