Driving Prices Up
– Lucerne continues to be the strongest sold fodder across the eastern part of Australia. A wet 2020 summer in Central New South Wales saw good quality dryland lucerne produced. Many farmers preferring to freight lucerne over potentially weather damaged cereal or vetch hay to meet protein needs. Improved conditions in Queensland have seen a return to lucerne production this season. Good catchment in dams and rivers will also give many growers the security of being able to irrigate over the coming summer.
– 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.
– 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
– Domestic trade continues to be at an all-time low. Over the last month as conditions have improved and stock return to paddocks there has been a further drop in any trade. Farmers now looking to new season hay and how that will be priced before committing to further purchases.
– A significant amount of last season’s weather damaged hay is on the market at a reduced price. It will be unlikely now to see that hay move so close to the new season.
– 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.
– Spring like conditions being felt in most states this week. Milder daytime temperatures and no early hot winds. Western Victoria continues to struggle in parts where rust red leather leaf will downgrade oaten day crops appearance but not feed value, as the region continues to struggle due to the lack of rain this season.
– Despite the reduction in hay plantings this season regular growers with good undercover storage will still aim to produce and store as much premium hay as possible.
– 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.
– 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.