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Driving Prices Up
- Scarcity of good quality older hay continues to be reported, and the forecasts for reduced hay production in the upcoming season continue.
- Growers are factoring in rising production and on-going input costs into the value of their harvest, and are in some cases producing to order for existing customers willing to enter into longer term contracts.
- Growers are responding to the adverse conditions late in the season and are updating their production choices, this has led to a high number spraying out or ploughing in vetch crops, which will significantly impact availability of good quality protein hay.
- Reports that some growers are applying a premium to small or short term deliveries to offset input costs.
- Demand continues from livestock and feedlots for hay and straw to add bulk to currently available green feed in some regions.
- Farmers, especially dairy farmers, are actively securing supplies of Protein Hay due to the prediction for lower production and lower quality by the end of the year.
Driving Prices Down
- Good spring pasture growth continues across areas which have had excellent rainfall and follow up warmer days to promote high quality green feed. This has seen a reduction in the demand for supplemental feeding.
- The supply of lower quality, mostly unshedded, older season hay came on to the market due to the scarcity of high quality supplies. This hay was traded at a lower price point as growers cleared space for the new season.
- Donations of hay, silage and straw of varying quality were sent to flood affected regions, this along with stock losses, reduced the demand in those areas.
- The Bureau of Meteorology’s (BOM’s) ENSO Outlook has been raised to show an established La Niña. Tropical Pacific sea surface temperatures have been cooling since June and are now at La Niña thresholds. The models indicate this La Niña event may peak during the spring and return to neutral conditions early in 2023.
- With moisture profiles are already at saturation point and the bureau’s outlook for a wet spring/summer firming the elevated flood risk remains for eastern Australia.
- Rain continues to fall on the hay growing areas of the east coast. The rain falls are consistent each week without allowing for extended periods of sunshine to enable curing and baling of high quality product for the new season.
- Reports of smaller hay and fodder plantings earlier in the year as growers chose to take advantage of predicted global grain and oilseed prices to offset higher input costs has led to the conclusion that there may be a shortage of high-quality spring hay and silage this season.
- The news that Bali is reporting no cases of Foot and Mouth Disease in the lead up to the G20 meeting in Indonesia is a cause from concern for farmers as the impression is that this news is not factual and may result in a slackening of the measures to prevent the disease reaching Australia.
- With the fuel excise reduction being removed this week, the costs of diesel will rise adding to the already high production costs for fodder.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.