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Driving Prices Up
- Pasture growth in the north of the country is still not meeting the needs of the local herds so fodder supplies continue to be sourced from the southern states. This should turn around early in the new year if favourable conditions persist.
- Restockers are making an impact on the market as more stock is kept on farm and require fodder supplies for weight gain before sales next year.
- The benchmark price set by exporters looking to fill shipments is continuing to keep cereal hay high and as a consequence, replacement fodder line pricing are also increased to cover the reduction of supply available to the domestic market.
Driving Prices Up
- Green feed availability in most of the southern states is providing a balance and keeping prices fairly stable in those regions.
- Southern Victoria is producing an unexpected amount of additional hay and silage after the recent rains reinvigorated pastures. Some of this has seen some rain damage and will therefore be sold at a lower price point, but overall good additional supply will be available in the area,
- 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 reduces transport costs.
- Pastures appear to be rebounding in the southern parts of the NSW coast very well with a reduction in need for pasture fodder being reported. Given the soaking rains there is commentary that suggests the hay requirement for the coastal parts of the state will be much reduced over the next few months.
- Concern in relation to Western Australia’s hay production being lower than expected due to the season cutting off early appears to be growing and there is growing certainty there will be some supply constraints in the second quarter of next year.
- 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.