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Driving Prices Up
- Dry conditions in parts of QLD and NSW continue to drive increased demand, most of which cannot be met locally either in quality or quantity. This is causing some price increases in the higher end of the market; however this is tempered by lower quality supply which is keeping prices fairly stable in some lines.
- Availability of fodder supplies is tight in some regions, requiring additional transports costs to be incorporated into fodder quotes. There are also some export opportunities removing some supply from the market.
- Lower livestock sales due to reduced pricing is seeing some additional herds on-farm and in feedlots which is increasing the demand for fodder and subsequently pushing up prices for some lines.
Driving Prices Down
- Green feed availability is still moderately high across most of the southern states, which is reducing demand locally. This is especially true in South Australia, southern Victoria and WA.
- As some dormant lines of fodder begin to see trade, prices are rebalancing to meet the current demand. This is resulting in an overall price drop in those lines.
- There has been a good cotton harvest this year leading to an increase in the availability of cottonseed as a fodder source.
- There appears to be a reasonable amount of older supply being released into the market, most of this at lower quality, which is being reflected in the pricing.
- Trade in hay continues to increase as the cooler temperatures are being felt across most regions. South Australia and parts of Victoria remain quiet with the abundance of green feed available and producers are supplying markets further afield in areas such as NSW and QLD.
- Growers and graziers in WA are still concerned in relation to the live export trade and the follow on effects from the possible ban on the trade. However most growers in the state are currently more concerned about the ramifications of the newly enacted Aboriginal Cultural Heritage Act and its effect on current or future farming practices.
- 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 July to September is that below median rainfall is likely to very likely for much of Australia. July to September 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.