Driving Prices Up
– The seasonal outlook released by BOM is predicting above average rainfall for the eastern parts of Australia as well as parts of Western Australia. A wet spring again this year has the potential to reduce the production of good quality cereal hay.
– Currently the hay industry is at an all-time low with regards to trade, but some farmers are taking the opportunity to seek out existing good quality hay that can be stored for dryer times. This continued trade will cause slight fluctuations in pricing.
– Labour shortages continue to impact growers as they race to secure staff for the upcoming harvest with many having to pay increased wages to remain competitive. Many growers are also waiting on new machinery that continues to be held up due to COVID impacts overseas.
– Despite a strong cattle market feedlots are increasing numbers to meet export markets and will need the fodder to support this demand.
Driving Prices Down
– Trade is minimal at present with many now waiting to see what will be available from the new season, with pricing expected not to significantly increase in the short term.
– Good spring conditions will see many farmers producing and conserving as much silage as they can themselves, particularly along the NSW Coast and Victoria.
– Australia continues to do well with no significant drought or natural disaster requiring the high volumes of hay being traded to all states that we have seen previously over the last ten years.
– A dryer week for most states following significant rainfall across South Australia, Victoria, and New South Wales. Many river systems have risen including the Murray below the Hume Dam and the Goulburn with minor flooding expected to continue.
– Boarder closures and permit requirements continue to be a concern for contractors as we approach the new silage and hay season.
– Silage is underway in Northern Victoria, with Southern Victoria to follow towards the end of September depending on conditions.
– Crops continue to do well with recent rain giving one last lift as we head into the final 4 – 6 weeks of the growing season.
– In the north demand in the Atherton Tablelands remains steady with a small amount moving locally. Following the ongoing rainfall in Northern QLD many parts including the Tablelands continue to have an influx of fresh grass. The Darling Downs region reporting one of the best starts to a season following good rainfall for the first half of the year. Barley crops have started to be cut in the area for hay.
– Southern Australia is again on track for a good season with timely rain, most regions are reporting good growth. Northern Victoria have started to cut silage, with many growers looking to turn these paddocks around for hay with good conditions. Several key factors still needed to take place and a relatively dry spring to improve on last year’s season.
– Western Australia has recorded one of its best season breaks. Rain has continued to fall during August but not the record falls recorded in July. High yields expected through the region as the season continues to progress well. Prices remain strong for all fodder types in WA.
– Buyers are encouraged to feed test and view fodder before purchasing to be sure of the quality of the feed.