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Driving Prices Up
- Good soaking rains in the drier parts of the country over the last few weeks is bolstering confidence in pasture growth with some green shoots beginning to be seen in those previously brown pastures. However until that translates into good grazing, fodder will continue to be in demand from both producers and feed-lotters.
- The recent turnaround in the price of both cattle and sheep at saleyards is having an effect on the amount of livestock moving off farm to sales and abattoirs as livestock producers look to keep more on farm to increase weight for sales next year and some are starting to restock, which will place upward pressure on fodder demands.
- Transport costs and the difficulty in sourcing drivers are continuing to be a factor in the price of fodder delivered to farms, with shortages adding a premium to per kilometre charges.
- Exporters are reportedly finding it difficult to fill shipments and are continuing to source cereal hay throughout the country and are looking for good parcels for which they are willing to pay premium prices to meet demand from newly reopened markets. This is providing a floor for not only oaten hay but for all cereal hay lines.
Driving Prices Down
- Green feed availability continues to keep demand tempered in parts of the southern states. The optimism of pasture rebounding in previously dry areas is also having a slowing effect on demand, however this will not be felt in relation to pricing for at least a few weeks as pre-orders and shipments continue to move into previously dry areas.
- Some older, lower quality pasture hay continues to appear on the market at a much reduced cost from the southern states as producers look to move the product on while demand remains from QLD and NSW, or to clear space in sheds in the areas that have produced good new season hay.
- Silage and hay production in most of Victoria and parts of Southern NSW are filling local needs quite well, with much fodder only moving locally, which reduces transport costs.
- Exporters are continuing to look for export quality oaten hay from across the country as the hay season finishes up, with plenty of trucks moving through the southern states to port.
- Recent heavy rainfall across the south coast of NSW and Gippsland has broken the drought in those regions and has led to some flooding, however even with some rains parts of South Australia are continuing to see a much reduced amount of available feed and hay supplies, local supply is currently meeting demand but this will need additional supplies over summer.
- The Bureau has declared that an El Niño and a positive IOD are underway. The declaration of these events, and their concurrence over spring, reinforces the Bureau’s long-range rainfall and temperature forecasts, which continue to predict warmer and drier conditions for much of Australia over the next three months. The confirmation of an established El Niño increases the likelihood that the event will be sustained through the summer period. Models indicate further warming is likely and that this El Niño is likely to persist until at least the end of February.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.