READ THE FULL REPORT HERE
Driving Prices Up
- With continuing heavy rainfall and cold temperatures across many regions, good quality hay will continue to be required to support stock.
- Stocks of hay in many areas which had been providing donations into flood affected areas are now low. Growers concerned about rising input costs will continue to reduce the amount of hay they can donate as they manage the increasing cost of hay production.
- There has been a significant drop in temperatures reducing the rate of pasture and grazing crop growth. This is supporting an increase in the demand for hay and silage.
- Input costs continue to impact cropping decisions. Many grain and fodder producers will not prioritise fertiliser application for pasture hay. This may reduce quantities of pasture hay produced during late Winter/early Spring.
- Opportunistic hay production has not been seen as a price competitive cropping option, therefore a smaller number of hectares has been sown this season. Those who are concerned about the potential of reduced supply are looking to lock in Spring hay supply.
- Slow but steady increase in inquires to source feed and increase on hand supplies. However, supplies of high-quality cereal hay are now very low in most regions.
- In a number of regions hay and fodder producers have little hay now available for open market sale or sale to new customers, most has been contracted for sale to long-term buyers.
Driving Prices Down
- Continued confidence that pasture growth will support stock without need for supplementary feed has kept demand for hay and fodder in some areas steady.
- Varied qualities of fodder are still available on the market. Growers with lower grade hay from past seasons, particularly hay stacked outside, have been actively trading.
- There are concerns prices remain low because of a misconception about the wide availability of good quality hay. The slow build-up of enquiries, and a lack of awareness regarding the impact international grain prices have had on crop choices may be leading to misconception about future available stocks.
- The Bureau of Meteorology have indicated have confirmed a continuation of the negative Indian Ocean Dipole (IOD) event is highly likely for the coming months. A negative IOD along with warmer than average sea surface temperatures increase the chances of above average Winter–Spring rainfall for much of Australia. While it will support pasture and crop growth it may also hinder haymaking.
- The bureau of meteorology has reported reasonable rainfalls along the south coast of Western Australia while medium falls across much of central south eastern Australian.
- Flooding eased for both southern Queensland and Northern NSW.
- The range of biosecurity incidents which may impact Australian agriculture are causing concern. Reports of Foot and Mouth Disease in Bali, the incursion of varroa destructor mite and Russian Wheat Aphid are being raised as concerns by many farmers contacted for the hay report.
- There is concern the high price of inputs, lack of availability of farm labour and likelihood of continuing higher than average rainfall in some regions is not being factored into fodder prices.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.