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Summary
Driving Prices Up
- South West Victoria and SA are continuing to be dry, even after recent rains in the South West. This is keeping the prices in those regions elevated, with a flow on effect to other parts of the state and country as supplies move into those areas. Freight is adding a substantial additional cost to fodder supplies.
- Protein and cereal hay supply appears to be quite tight, though new supply is appearing on the market as growers evaluate their own needs and look to what they can release for sale. Some exporters are continuing to release export quality hay to the domestic market and this is at a higher price due to quality.
- Demand is strong as expected at this time of year as cattle and dairy farmers look to good roughage to carry calving stock through the colder months. While recent rains are welcomed in dry areas, it will do little to build pastures before winter, and a green drought is being experienced in many areas. This is exacerbated by some fodder producers holding back additional supply for their own use.
Driving Prices Down
- Conditions in WA continue to improve with the good and steady rain more pastures are becoming available for grazing and further reducing demand. Soil moisture profiles are still low and producers are still looking to rebuild stores and ensure a steady availability over winter in case the tap turns off so prices continue to stabilise rather than drop in most cases.
- Older, somewhat lower quality fodder supplies continue to be available in the marketplace, and are being picked up by farmers looking to include them in feed mixes and fill the winter gap.
Local News
- WA continues to benefit from ongoing rain events and warmer temperatures helping to rebuild pastures. However SA and South West Victoria continue to be dry even after some recent rains, this has not been enough to turn around pasture availability in any significant way and will not be as cold winter temperatures stall most growth. Containment feeding is still being undertaken in those areas.
- Tasmania’s dry conditions continue for most of the state and supplies are remain tight, though the North West does have good pasture availability. Fodder continues to be sourced from the mainland, but the process can be slow due to biosecurity measures.
- The northern coastal areas of NSW and parts of Northern QLD are seeing a green drought due to the high rainfall events that have occurred this winter.
- The El Niño–Southern Oscillation is currently neutral. Sea surface temperatures in the central Pacific have been cooling since December 2023. This cooling is supported by a cooler than average sub-surface in the central and eastern Pacific. In June, the rate of cooling has decreased. La Niña Watch is in effect due to early signs that an event may form in the Pacific Ocean later in the year.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.