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Driving Prices Up
- The ongoing dry conditions in SA and WA specifically continue to hamper the ability of pastures to provide good green feed options requiring supplemental feeding and the replacement of on farm stores of fodder.
- The reduction in price of cattle sheep has meant some livestock producers are holding on to stock that would normally have been sold, which is requiring more fodder supplies to keep them fed. This is especially true in QLD which has led to fodder supplies being sourced from the southern states at higher premiums.
- Supply shortages continue to affect the market, keeping prices high. Though this is countered somewhat by reduced sales at the higher price points, however high-quality protein hay is still at a premium.
- As we move into autumn farmers are looking to build up on-farm supplies for the cooler months ahead.
Driving Prices Down
- Green feed continues to be available in areas which have received ongoing autumn rains; this is keeping demand down locally. Some additional hay production and movement of hay has also
- 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. Many farmers are buying grains due to concerns regarding the quality of some of the available hay.
- Hay and straw production is still ongoing in limited quantities, most especially in Victoria, supplying the local market.
- Trade in hay is steady in most regions. Though those areas seeing extended dry spells are increasing demand which is being met both locally and from interstate, there are reports of hay supplies from Victoria 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 is expected concern across the livestock sectors, especially sheep graziers in relation to the latest updates on the sheep live export trade. This is mostly in WA but concern about flow on effects across both livestock and fodder industries is widespread.
- Roads and rail repair are still front of mind for a lot of producers, especially in regions that were damaged by floods in 2022. However most local roads need some repair and maintenance, and this is being pushed to local, state and federal governments with greater frequency.
- The Bureau of Meteorology (BOM) has stated that the El Niño–Southern Oscillation (ENSO) is currently neutral. Oceanic and atmospheric indicators for the tropical Pacific Ocean are at neutral ENSO levels. International climate models suggest neutral ENSO conditions are likely to persist through the southern hemisphere autumn. Long-range forecasts of ENSO conditions made in early autumn have lower accuracy than those made at other times of the year. However, there are some signs that El Niño may form later in the year. Hence the Bureau has issued an El Niño watch. This means there is a 50% chance of El Niño in 2023.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.