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Driving Prices Up
- Continued good rains in the drier parts of the country over the last few weeks is bolstering confidence in pasture growth however until that growth happens, the pastures remain dry and brown and fodder continues to be in demand from both producers and feed-lotters.
- Transport costs and the difficulty in sourcing drivers are continuing to be a factor in the price of fodder delivered to farms, with shortages adding a premium to per kilometre charges.
- Exporters are reportedly finding it difficult to fill shipments and are continuing to source cereal hay throughout the country and are looking for good parcels for which they are willing to pay premium prices to meet demand from newly reopened markets.
Driving Prices Down
- Green feed availability continues to keep demand tempered in parts of the southern states.
- The continuing reduction in the size of the beef herd and sheep flocks is applying downward pressure on prices as demand wanes in local areas, though this is somewhat countered by increased requests from feedlots.
- Some older, lower quality pasture hay is being cleared out from sheds in the southern states as producers look to move the product on while demand remains from QLD and NSW, or to clear space in sheds in the areas that have produced good new season hay.
- 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.
- Exporters are continuing to look for export quality Oaten hay from across the country as the hay season moves through the regions, with plenty of trucks moving through the southern states to port.
- While rains have fallen across much of QLD and northern NSW the south coast of NSW continues to be a hay hotspot as the dry conditions and very low pasture growth drive demand. A similar situation is being seen in the south east of South Australia though local supply is continuing to meet most demand.
- The Bureau has declared that an El Niño and a positive IOD are underway. The declaration of these events, and their concurrence over spring, reinforces the Bureau’s long-range rainfall and temperature forecasts, which continue to predict warmer and drier conditions for much of Australia over the next three months. Models indicate further warming is likely and that this El Niño is likely to persist until at least the end of February.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.