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Driving Prices Up
- Winter temperatures and dry conditions are leading to a slowdown in pasture growth and availability of green feed in some parts of the country which is keeping demand for fodder high.
- Livestock producers are looking for higher quality fodder for weaners, and are willing to pay a premium for guaranteed consistency.
- Feedlots are looking for good quality fodder options and are pushing up demand in some lines.
Driving Prices Down
- There is still a fair amount of good green feed options available across most of the southern states, which is reducing demand locally.
- There is optimism from some farmers that the current pasture feed coupled with existing on-farm stores will be sufficient to carry over into the next fodder season.
- Feed quality grain continues to be 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; the rain delayed harvest resulted in some coarser low quality hay being produced and some of this is feeding into the market as other supplies tighten.
- Cotton harvest in QLD and northern NSW is reaching the end of the peak period which will reduce the impact on available transport options. The harvest is moving down through NSW and transport is following.
- Trade in hay is picking up as the cooler temperatures are being felt across most regions, especially NSW and Victoria. South Australia remains quiet with the abundance of green feed available and producers are looking for markets further afield in areas such as Northern NSW and QLD.
- As well as the on-going issues with the live export trade of sheep out of Western Australia which is still unresolved, farmers in the state are also looking with concern at the Aboriginal Cultural Heritage Act which comes into effect on 1 July 2023 and the possible impact on their farming enterprises.
- The Bureau of Meteorology (BOM) has revised its El Niño status from watch to alert, which indicates a 70% probability of an El Niño forming in 2023. This is roughly three times the normal chance of an El Niño. The outlook for June to August is that below median rainfall is likely to very likely for much of Australia. June to August both maximum and minimum temperatures are likely to very likely to be warmer than median for virtually all of Australia excluding some inland regions.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.