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Summary
Driving Prices Up
- Pasture feed in the dry parts of Victoria and SA continues to be inconsistent, and there remains little available supply in those regions. This means freight is adding a substantial additional cost to fodder supplies coming in.
- Unusual demand in the southern states is leading to localised reduction in available local supplies as some producers can obtain better margins by shipping fodder south, leading to shortfall in some parts of Northern NSW.
- End users of fodder are entering into forward contracts with producers, especially in areas with low stocks, this is feeding into the expectation of less supply being available as the season progresses, and pushing up the cost of currently available supply.
- Fodder producers continue to hold back some available supply for their own use as a bolster against a possible feed shortage in late winter and spring.
Driving Prices Down
- Conditions in WA continue to improve with the good and steady rain.
- Early production of new season hay in southern Queensland is adding to the availability in the marketplace, though this is having a limited effect currently.
Local News
- The dry conditions in the southern mainland states has been somewhat alleviated by the recent rains, but pastures are still rebounding and not at full utilisation.
- Tasmania’s dry conditions continue for most of the state, most especially in the south and supplies are remaining tight, though the North West does have good pasture availability.
- The wet conditions which hit northern NSW and parts of Queensland has reduced the availability of hay supplies, in both weather affected stores and the ability sow or resow paddocks for hay production. This is now showing some shortfalls.
- The El Niño–Southern Oscillation is currently neutral. Sea surface temperatures in the central Pacific have been cooling since December 2023. This cooling is supported by a cooler than average sub-surface in the central and eastern Pacific.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.