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Driving Prices Up
- Supply shortages are well known and growers who have supply have a good market for higher returns.
- Some areas in the south and the west have had very hot conditions, drying out available green pasture feed.
- A larger than usual volume of livestock is going into feedlots which are then looking for fodder supplies.
- Farmers are looking to build up on-farm supplies for the cooler months ahead.
Driving Prices Down
- Green feed is still available in some regions and keeping demand down locally.
- There is an abundance of feed grain options due to the bumper harvest combined with some adverse weather conditions leading to a downgrade of some grains.
- Silage production has been quite good across parts of the country, which is helping to fill some fodder shortages. Additional windows of opportunity for hay production is also bring some extra supplies on to the market in some localities.
- Trade in hay has slowed down across most regions which is traditional at this time of year.
- Many areas are reporting an intention for large vetch plantings in the next season, to make up the shortfall from the failed vetch harvest of last year.
- Local roads and infrastructure are in serious need of repair and maintenance and these repair works are expected to continue for some months, especially in areas hit by flooding events in 2022. This will have on-going effects on farm businesses.
- The Bureau of Meteorology (BOM) states that La Niña continues in the tropical Pacific, but oceanic indicators have weakened since their peak during spring 2022. While ocean temperatures have eased from La Niña thresholds, the atmosphere has yet to respond, and remains La Niña-like. La Niña typically increases the chance of above-average rainfall for northern and eastern Australia during summer.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.