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Driving Prices Up
- Pastures have rebounded well in the north of the country; however producers are still looking for high quality vetch and lucerne hay and are keeping prices elevated. In WA the very dry conditions are driving demand across all fodder lines as pastures are unable to supply quality green feed.
- Livestock producers are seeing a lift in the price at saleyards and are continuing to put on weight before sales or moving stock into feedlots to finish off which is increasing demand.
- The benchmark price set by exporters looking to fill shipments is continuing to keep cereal hay in demand and as a consequence, replacement fodder line pricing are being kept buoyant to cover the reduction of supply available to the domestic market.
Driving Prices Down
- Good green feed availability across most of the southern states is meeting short term livestock needs with a commensurate reduction in demand for fodder lines.
- Straw appears to have been made in abundance in QLD and NSW and feedlots are reportedly well stocked, which is reducing demand for the product.
- Silage and hay production in most of Victoria and parts of Southern NSW are filling local needs quite well, with much fodder only moving locally, which has a lowering effect on the additional transport costs.
- Heavy rainfall across parts of southern NSW and Victoria has led to riverine flooding across pastures and paddocks as well as damage to buildings. The effect on fodder production will be assessed once flood waters fully recede.
- Western Australia’s hay production for the season is confirmed as being below average with a sizable reduction in yield combined with low rainfall leading to little green feed availability. There is growing certainty there will be some supply constraints in late summer and autumn.
- The Bureau has stated that the long-range forecast for Australia indicates warm days and nights nationwide. During January, there is an increased chance of above median rainfall for parts of Queensland, NSW and Victoria, and more neutral rainfall chances across much of the country. Chances favour drier than average conditions for western parts of WA and the Top End of the NT. The El Niño event continues in the tropical Pacific – the typical drying influence of El Niño on Australia’s climate usually reduces during summer, especially in the east.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.