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National Summary
Driving Prices Up
- South west Victoria and South Australia continue to have reduced pasture availability which is keeping the movement of hay and the cost for the fodder high.
- Tasmania is seeing good pasture and as a result but hay supplies remain tight leading to sizable price spikes for those lines which are available.
- Many producers are continuing to rebuild on-farm stores or lock away production for export or pre-contracted buyers. Exporters are yet to provide price indications.
Driving Prices Down
- Western Australia is set to have a good hay and silage season with the turnaround in the outlook from a few months ago. This is seeing a reduction in demand and prices as a result.
- Northern Queensland continues to see reasonable hay production and reduced demand which is building up stores and reducing the price point.
- A combination of factors, including a challenging start to spring, with minimal rain and frost events impacting cereal crops in South Australia and Victoria which may result in an increase in the amount of cereal crops which will be cut for hay. This will boost the amount available in the region though the quality will be variable.
Local News
- Gippsland is showing a different outlook to the rest of Victoria with good soil moisture and reasonable warmth promoting pasture growth and the production of silage.
- Croppers in South Australia are increasingly looking at shifting their grain production crops into hay production given the lack of rain and several areas being impacted by frost in the past week.
- The BOM has released a Climate Driver Update, reporting that El Niño–Southern Oscillation (ENSO) is neutral, with both sea surface temperatures (SSTs) in the central equatorial Pacific Ocean and atmospheric patterns within ENSO-neutral thresholds. While some atmospheric indicators such as pressure, cloud and trade wind patterns over the Pacific have been more La Niña-like over the past few weeks, it remains to be seen whether these conditions will be sustained. The Bureau’s model suggests SSTs are likely to remain within the ENSO-neutral range throughout the forecast period. The next update will be released on 1 October.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.