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Driving Prices Up
- As dry conditions persist in QLD and NSW demand continues to be high to meet the needs of livestock producers seeking to keep their herds healthy on farm.
- Feedlots in the north of the country continue to drive demand which is being met from the south at a good price premium, reducing the amount available in the local market and pushing those prices up.
- Transport costs continue to be a factor in the overall cost of fodder as producer’s factor in the high cost of fuel as well as the availability of drivers to deliver the fodder.
- Exporters continue to source cereal hay throughout the country and are looking for good parcels at premium prices. This is continuing to stabilise or in some cases see a lift in prices for wanted lines as reports suggest there may be a short supply of those lines.
Driving Prices Down
- Local green feed availability continues to keep demand, and therefore prices, stable in most of the southern areas of the country. Though this is beginning to have less of an impact as some pastures brown out.
- 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. This is having an inverse effect as well as more animals move to feedlots for finishing before sales which increase demand out of the feedlots.
- On farm supplies continue to be reasonable, which is allowing mixed farmers to balance their buying choices and making longer term contracts and decisions when the price is good.
- Older hay supplies are still filtering into the market, as the new season moves through the regions, this hay can be of lesser quality and therefore usually at a lower cost.
- Growers in SA and WA are taking advantage of the good premiums being offered as the exporters open their books.
- The amount of agricultural land which has been affected by fires in NSW, QLD and WA are continuing to come in, which some growers having lost a fair amount of feed paddocks and some stock losses.
- Growers and graziers in WA are waiting in the tabling of the report from the live sheep export phase out panel after the extension period ended this week.
- The Bureau’s has declared that an El Niño and a positive IOD are underway. The declaration 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 of the central to eastern Pacific 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.