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Driving Prices Up
- Winter temperatures and dry conditions are leading to a slowdown in pasture growth and availability of green feed in some parts of the country which is keeping prices steady against the downward trend due to reduced fodder quality availability on the market
- Availability of fodder supplies is tight in some regions, requiring additional transports costs to be incorporated into fodder quotes.
- Quite a large portion of the available hay stocks are already contracted, leading to tightening of supply.
- Feedlots are looking for good quality fodder options and are pushing up demand for some lines.
Driving Prices Down
- There is still a fair amount of good green feed options available across most of the southern states, which is reducing demand locally. This is especially true in South Australia.
- There has been a good cotton harvest this year leading to an increase in the availability of cottonseed as a fodder source.
- Feed quality grain continues to be 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.
- Hay quality is variable; some older hay which was not shedded and therefore subject to rain has been released and is lowering the price point where sale occurs.
- Trade in hay is edging up slowly as the cooler temperatures are being felt across most regions. South Australia and parts of Victoria remain quiet with the abundance of green feed available and producers are looking for markets further afield in areas such as Northern NSW and QLD.
- There is a level of concern among sheep graziers and the producers that supply them that the flock in WA will be reduced significantly after this shearing season as the uncertainty around the future of the live trade export cause some graziers to destock in part or in full.
- The Bureau of Meteorology (BOM) has revised its El Niño status from watch to alert, which indicates a 70% probability of an El Niño forming in 2023. This is roughly three times the normal chance of an El Niño. The outlook for July to September is that below median rainfall is likely to very likely for much of Australia. July to September both maximum and minimum temperatures are likely to very likely to be warmer than median for virtually all of Australia excluding some inland regions.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.