Driving Prices Up
– Livestock continue to trade well, and farmers will look to good quality feed to carry younger stock through summer until they are ready for market.
– A potential shortage of good quality new season hay. With another full season before hay will produced again and growers making the decision to cut back this year farmers may struggle to find the fodder they need in autumn and winter next year.
– Currently the hay industry is at an all-time low with regards to trade, but some farmers are taking the opportunity to seek out existing good quality hay that can be stored for dryer times. This continued trade will cause slight fluctuations in pricing.
– The cost of production is set to increase in the coming year with fertiliser shortages due to China’s ongoing power issues forcing them to decrease production as well as price increases for chemical and available fertiliser.
Driving Prices Down
– Domestic trade has reduced even further as many farmers concentrate on silage production. New season prices are not expected to increase dramatically as many farmers wait now to see how much is produced and the quality of new season hay.
– A significant amount of last season’s weather damaged hay is on the market at a reduced price. It will be unlikely now to see that hay move so close to the new season.
– Good spring conditions will see many farmers producing and conserving as much silage as they can themselves, particularly along the NSW Coast and Victoria.
– Australia continues to do well with no significant drought or natural disaster requiring the high volumes of hay being traded to all states that we have seen previously over the last ten years.
– Hay production is well under way in the north producing some of the best cereal hay in several years.
– Despite the reduction in hay plantings this season regular growers with good undercover storage will still aim to produce and store as much premium hay as possible.
– Boarder closures and permit requirements continue to be a concern for contractors as they move between states.
– Majority of spring silage has been made now in Northern Victoria, with Southern Victoria starting in the last fortnight. Good conditions in the Bega region will see a significant amount of silage made again this season.
– In the north demand in the Atherton Tablelands remains steady with a small amount moving locally. Following the ongoing rainfall in Northern QLD many parts including the Tablelands continue to have an influx of fresh grass. The Darling Downs region reporting one of the best seasons following good rainfall for the first half of the year. Oaten crops have started to be cut in the area for hay.
– New South Wales reporting good crops following timely rainfall. South Australia impacted by dryer conditions, further in the Southeast crops are on track to yield well. Northern Victoria will start cutting within the fortnight. Several key factors still needed to take place and a relatively dry spring to improve on last year’s season.
– Western Australia has recorded one of its best season breaks. Rain has been timely for the west this season. High yields expected through the region as the season continues to progress well. Prices remain strong for all fodder types in WA.
– Buyers are encouraged to feed test and view fodder before purchasing to be sure of the quality of the feed.