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Driving Prices Up
- While areas of Victoria and South Australia are showing green pastures, the underlying moisture deficit is a cause for concern for the production of quality fodder in the new season, with the current crops only moving ahead under irrigation or on the back of limited rains.
- Given the lack of good winter rains and the availability of subsoil moisture some vetch crops in the Wimmera and the Mallee of Victoria and South Australia are being sprayed out as they will not produce sufficient biomass for fodder production. This will place additional constraints on protein hay supplies.
- Tasmania, which has seen some good rains, has also experienced flooding and continues to see a significant shortfall in available fodder supplies leading to sizable price spikes for those lines which are available.
- Many producers are continuing to rebuild on-farm stores, or lock away production for export or pre-contracted buyers.
Driving Prices Down
- Conditions for the pastures in Western Australia have turned around significantly and the next hay production season is looking more promising. These have combined to see a slow but steady reduction in some lines.
- Northern Queensland is seeing an excess of available fodder supplies due to a mix of good pasture feed and recent favourable hay production conditions. Some of this is pre-contracted, but much is filling producer sheds.
- Supplies of older, and in some cases, weather damaged hay is still coming on to the market. Much of this is from 2022 and earlier and is at a discounted price.
Local News
- Tasmania has seen substantial rainfall over the last 4 weeks which has rebuilt much of the missing subsoil moisture, to the point that some areas have seen localised flooding. However the south of the state still remains drier than usual.
- Croppers in South Australia are increasingly looking at shifting their grain production crops into hay production given the lack of winter rains and the likelihood of less spring rains.
- The BOM indicates that ENSO and IOD are likely to remain neutral in spring 2024.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.