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Driving Prices Up
- Dry conditions continue across parts of the country, specifically SA and WA which has reduced the availability of pasture feed, requiring supplemental feeding and the replacement of on farm stores of fodder.
- Supply shortages continue to affect the market, keeping prices high. Though this is countered somewhat by reduced sales at the higher price points, though high quality protein hay is still at a premium.
- As we move into autumn farmers are looking to build up on-farm supplies for the cooler months ahead.
Driving Prices Up
- Green feed continues to be available in areas which have received ongoing autumn rains; this is keeping demand down locally.
- Cattle and sheep prices have dropped across the country which has a follow-on effect of reducing purchases from livestock producers, which is causing a small dip in pricing to entice more sales.
- There is an abundance of feed grain options due to the bumper harvest combined with some adverse weather conditions leading to a downgrade of some grains. More of this is being incorporated into the fodder mix.
- Hay and straw production is still ongoing in limited quantities, most especially in Victoria, supplying the local market.
- Trade in hay is steady in most regions. Though those areas seeing extended dry spells are increasing demand which is being met both locally and from interstate, there are reports of hay supplies from Victoria moving up to QLD and NT to supply farmers and feedlots.
- There is expected concern across the livestock sectors, especially sheep graziers in relation to the latest updates on the sheep live export trade. This is mostly in WA but concern about flow on effects across both livestock and fodder industries is widespread.
- Roads and rail repair are still front of mind for a lot of producers, especially in regions that were damaged by floods in 2022. However most local roads need some repair and maintenance, and this is being pushed to local, state and federal governments with greater frequency.
- The Bureau of Meteorology (BOM) has stated that the El Niño–Southern Oscillation (ENSO) is currently neutral. Oceanic and atmospheric indicators for the tropical Pacific Ocean are at neutral ENSO levels. International climate models suggest neutral ENSO conditions are likely to persist through the southern hemisphere autumn. Long-range forecasts of ENSO conditions made in early autumn have lower accuracy than those made at other times of the year. However, there are some signs that El Niño may form later in the year. Hence the Bureau has issued an El Niño watch. This means there is a 50% chance of El Niño in 2023.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.