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Driving Prices Up
- Colder temperatures are increasing demand for pre-contracted winter feed options which are seeing limited lines of fodder rise.
- There has been a drying out of some areas of Victoria and South Australia which is beginning to hamper green feed availability and requiring additional fodder supplies in a restricted market.
- Specialty equine hay supplies are being sought at the higher quality end of the market which is keeping protein hay prices elevated.
- The falling price of cattle and sheep has meant some livestock producers are holding on to stock that would normally go to the saleyards, which is requiring more fodder supplies to keep them fed. This is mostly affecting WA and QLD which in the latter case has led to fodder supplies being sourced from the southern states at higher premiums.
Driving Prices Down
- In some areas with a good mix of rains and warmth confidence continues from producers that pasture growth will supply feed for stock and this has led to lessening of demand for resupply purposes.
- Feed quality grain remains readily available to farmers at a good price point. Many farmers are buying grains due to concerns regarding the quality of some of the available hay.
- Hay quality is variable; with quite a bit of mid-grade hay being available and bought, this is lowering the average price point.
- The cotton harvest in QLD and Northern NSW is taking up a significant portion of the transport options in the region, reducing the availability for deliveries of other produce, including on-demand fodder supplies.
- Trade in hay is beginning to pick up as the cooler temperatures are being felt across most regions, especially NSW and Victoria. Frosts are a cause for concern in southern Victoria and Tasmania.
- Concerns continue to be voiced in WA in relation to the live export trade, with many graziers as well as others in the supply chain indicating that the information that is being provided is not sufficient and there is little to no clarity about long term prospects for the industry with the proposals put forward thus far.
- The Bureau of Meteorology (BOM) has stated for May to July, below median rainfall is very likely for almost all of Australia. Both maximum and minimum temperatures are very likely to be warmer than median for the majority of Australia. This forecast is being influenced by several factors including an ENSO-neutral pattern tending towards El Niño in the latter part of the forecast period, and the chance that a positive IOD event may develop in the coming months.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.