READ FULL REPORT HERE
Driving Prices Up
- With continuing rainfall events and cold temperatures across many regions, good quality hay is required to support stock. Those who had not contracted to purchase hay earlier in the season are having to seek hay from further afield, incurring additional transportation costs.
- The growth rate of pasture and grazing crops remains slow due to the colder temperatures. This will keep the increased demand for hay and silage steady over the coming weeks.
- Input costs continue to impact cropping decisions. Many grain and fodder producers will not prioritise fertiliser application for pasture hay. This will reduce the quantities of good quality varietal pasture hay produced this coming season.
- Opportunistic hay production has not been seen as a price competitive cropping option this season. Those who are concerned about the potential of reduced supply are looking to lock in Spring hay supply now driving some contract prices up.
- Slow but steady increase in inquires to source feed and increase on hand supplies. However, supplies of high-quality cereal hay are now very low in most regions.
- In a number of regions hay and fodder producers have little hay now available for open market sale or sale to new customers, most has been contracted for sale to long-term buyers.
Driving Prices Down
- Continued confidence that pasture growth will support stock without need for supplementary feed has kept demand for hay and fodder in some areas steady.
- Varied qualities of fodder are still available on the market in some areas as growers clear out their final stores of outside stacked lower quality hay.
- There are concerns the slow build-up of enquiries may have led to misconceptions about future available stocks and prices in many areas reflect this complacency.
- The Bureau of Meteorology have indicated climate model outlooks indicate a negative IOD event is still highly likely for the coming months. A negative IOD along with warmer than average sea surface temperatures increase the chances of above average winter–spring rainfall for much of Australia.
- Stocks of hay in many areas are now low. Growers concerned about rising input costs have reduced hay donations into flood impacted areas as they manage the increasing cost of hay production. Hay going into flood impacted areas has therefore risen in price.
- The bureau of meteorology has reported reasonable rainfalls across much of the south west corner of WA. There has been moderate to heavy rainfall across central and highland areas of southern Qld, NSW and Victoria, but many cropping areas missed out. Light to medium falls generally across South Australia.
- The range of biosecurity incidents which may impact Australian agriculture are causing concern. Reports of Foot and Mouth Disease in Bali and the incursion of varroa destructor mite are being raised as concerns by many farmers contacted for the hay report.
- There is concern the high price of inputs, lack of availability of farm labour and likelihood of continuing higher than average rainfall in some regions is not being factored into fodder prices.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.