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Driving Prices Up
- Supply shortages are well known and growers who have supply have a good market for higher returns.
- Warmer conditions are reducing the amount of available green feed in some areas requiring farmers to seek fodder options.
- A larger than usual volume of livestock is going into feedlots which are then looking for fodder supplies.
- Recent heavy falls of rain in Northern and Central Queensland are bringing more livestock producers on to the market looking for supplies.
Driving Prices Down
- Green feed is still readily available in some areas of Victoria and Tasmania which is reducing the need for additional fodder supplies in those areas and releasing some supplies to be shipped to other states where shortages are being felt.
- 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.
- Silage production has been quite good across parts of the country, which is helping to fill some fodder shortages. Additional windows of opportunity for hay production is also bring some extra supplies on to the market in some localities.
- Trade in hay has slowed down across most regions which is traditional at this time of year.
- With the grain harvest mostly wound up, the pressure on roads and rail has eased, however local roads and infrastructure are in serious need of repair and maintenance and these repair works are expected to continue for some months, especially in areas hit by flooding events in 2022.
- The Bureau of Meteorology (BOM) states that La Niña continues in the tropical Pacific, but oceanic indicators have weakened since their peak during spring 2022. While ocean temperatures have eased from La Niña thresholds, the atmosphere has yet to respond, and remains La Niña-like. La Niña typically increases the chance of above-average rainfall for northern and eastern Australia during summer.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.