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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 prices elevated.
- Availability of fodder supplies is tight in some regions, requiring additional transports costs to be incorporated into fodder quotes.
- Most of the hay stores that can be seen in sheds are already contracted.
- Feedlots are looking for good quality fodder options and are pushing up demand for 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. This is especially true in South Australia.
- 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. South Australia and parts of Victoria remain 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.