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Driving Prices Up
- Some areas which have seen good rainfall, have not had sunshine and warmth to bolster growth and soil temperatures remain low, which has led to an increase in demand for hay.
- The price of cattle and sheep has meant some livestock producers are holding on to stock that would normally go to the saleyards, which is requiring more fodder supplies to keep them fed. This is mostly affecting WA and QLD which in the latter case has led to fodder supplies being sourced from the southern states at higher premiums.
- More livestock and dairy farmers are looking to lock in winter feed options and are generating some early interest and demand.
Driving Prices Down
- There is continued confidence from producers that pasture growth will supply feed for stock and this has led to lessening of demand for resupply purposes.
- 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.
- The quality of available hay varies quite significantly with high quantities of lower quality on the market than usual due to delayed harvesting last season, this lowers the average price point.
- The cotton harvest in QLD and Northern NSW is taking up a significant portion of the transport options in the region, reducing the availability for deliveries of other produce, including on-demand fodder supplies.
- Trade in hay is quiet in most regions with the recent rains, though hay supplies from Victoria are still moving up to QLD and NT to supply farmers and feedlots. However quite a bit of the demand is being met by feed grain options due to both price and consistent quality.
- There are concerns amongst mixed farmers who have cropping as part of their enterprise with the change to the MRL of Haloxyfop in Canola for EU export and the indication this reduction of acceptable residual levels could extend into the pulses sector. While this does not yet affect the domestic market there are concerns in relation to cross contamination.
- Concerns continue to be voiced in WA in relation to the live export trade, with many graziers as well as others in the supply chain indicating that the information that is being provided is not sufficient and that there is a feeling that the real-world concerns of those producers are not being heeded.
- The Bureau of Meteorology (BOM) has stated for May to July, below median rainfall is very likely for almost all of Australia. Both maximum and minimum temperatures are very likely to be warmer than median for the majority of Australia. 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.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.