READ THE FULL REPORT HERE.
Driving Prices Up
- Dry conditions continue to keep demand and prices elevated as fodder supplies move from the southern states up to meet demand in Queensland, Northern New South Wales and parts of the New South Wales south coast.
- Transport costs continue to play a significant role in the cost of fodder supplies, especially given the distances between available fodder supply and the current areas of high demand. There are also some export opportunities removing some supply from the market.
- Low saleyard prices continue to keep larger herds either on farm or in feedlots which is leading to higher fodder requirements and a continuing tightening of supply.
Driving Prices Down
- Local green feed availability is keeping demand, and therefore prices, stable in select areas of the country.
- Reports that some livestock producers are moving stock from low fodder areas in the north of the country down to agist in areas with better green feed availability, which is reducing some demand pressures.
- Hay season is a few weeks away in parts of the country and some end users are holding off on purchases in the expectation that higher supply will reduce the cost of fodder.
- Older hay supplies continue to be made available to the market as producers clear some space in preparation for the next season. This hay is of variable quality and is reducing the price point in selected regions.
- Trade in hay is moving along, especially out of areas in parts of VIC and SA where green feed is still available and into drier parts of the county such as the Darling Downs and most of NSW. Any fodder being cut in those drier areas is being sold and transported very quickly to meet local demand. Some across state hay supplies are moving into the eastern parts of Gippsland where it has become unseasonably dry.
- South Australian growers are reportedly quite pleased with the recent decision in relation to the cease harvest threshold being set by the Country Fire Service for this season, as there were concerns the proposed threshold would have seriously affected the ability to bring in the harvest for both grain and hay.
- The Bureau of Meteorology (BOM) El Niño Alert continues. When El Niño Alert criteria have been met in the past, an El Niño event has developed around 70% of the time. The Indian Ocean Dipole (IOD) is currently neutral. Climate model forecasts suggest a positive IOD is likely to develop in late winter or early spring. The Southern Annular Mode (SAM) index is currently positive and is expected to return to neutral values in the coming week.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.