Hay Report - 22 September 2017

National Summary

  • The hay market was subdued again this week as trading took a back seat and the focus for growers began to turn to cutting silage and hay. For many regions this has come earlier than expected as warmer weather and limited rains have propelled us toward the new season.
  • This is certainly not the case for the entire country, as great variability exists in both spring rainfall and the subsequent success of this year’s winter crops. Generally speaking, the north is the driest, but in recent weeks some fresh cereal has eased demand from farmers and limited the amount of fodder being sent from the south.
  • The south continues to be a mixed bag with some areas seemingly dead and buried in the midst of a dry winter, now looking to have another bumper year and no place to put it.
  • There continues to be an oversupply of feed in southern regions and even with the easing of price in the past fortnight little market exists for last season poorer hay. Most farmers continue to search for quality and are more often considering the long term outcome of this investment on animal output.

    Read more ...

Hay Report - 15 September 2017

National Summary

  • The demand for hay remained subdued and mostly unchanged this week despite a greater push from southern growers looking to clear sheds of last season’s product. Some prices eased at the bottom end but this is yet to see a real boost in trading.
  • It’s now clear that in the south there will be a significant overflow of fodder from last year. Despite the forecast of a drier spring, September has held onto some rain and has crops in good stead. While there are exceptions, a positive outlook is being reported from farmers with abundant feed supplies across Victoria, southern NSW and South Australia.
  • The only question that has southern growers scratching their heads is where they will put all this feed when dairy farmers don’t have a high demand for it. Reports indicate we will see a large premium put on ‘shedded’ hay once again this year with quality the difference between a sale or not.
  • The north continues have a lesser supply but still only moderate demand. Activity certainly has lifted somewhat this week with the introduction of new season cereal. The impact of this on pricing though is yet to be fully realised.

    Read more ...

Hay Report - 8 September 2017

National Summary

  • Hay trading continues to be subdued across much of the country as farmers wait and assess the full potential of the coming season.
  • While there are already signs suggesting the north will produce less hay this year, the lack of rainfall is yet to prompt many buyers to rush in and secure large volumes of fodder. Some farmers are hoping for a strong spring break to alleviate pressure while others are put off by premium prices and will sit out until absolutely necessary.
  • There has been a notable increase in the amount of poorer quality feed traded in recent weeks as growers, particularly in the south, look to make room in sheds for new season feed. In stark contrast to those in the north, southern growers are staring down the barrel of another year of oversupply with most farmers still reporting good levels of supply.
  • One of the greatest questions yet to be answered is what the level of quality will be and will it be improved from last year. More wet weather in Victoria and South Australia has left a lot of water on the ground but the outlook is uncertain. The amount of top quality feed on the market continues to shrink and growers are hoping for an uninterrupted harvest to allow for better quality to become the norm again and subsequently a return to higher prices.
  • With the variability in feed available at the moment, we continue to advocate for the careful inspection of fodder before purchase. Sight and smell isn’t enough however and we also encourage buyers and growers to have fodder tested.

    Read more ...

Hay Report - 1 September 2017

National Summary

  • There exists varying levels of supply and demand around the country for all fodder types. The onset of spring and warmer weather is bringing optimism for a return to pasture growth which will further dampen an already subdued hay market.
  • Access to good quality cereal hay and protein hay remains an issue throughout most regions and continues to be in demand, especially from the dairy sector. Poorer quality hay remains in very good supply but demand for this is minimal and this is causing concern for the volumes that will need to be carried over on top of the new season production. Prices have eased somewhat on this lower quality product and may well ease further as traders anxiously try to make room for new season production.
  • Careful inspection and feed tests continue to be advocated when buying fodder as the wide variance in the quality available still exists. A number of fodder producers are forecasting lower yields than last season but an increase in quality.
  • Southern regions continue to have good access to fodder. Cereal is particularly strong and a lower demand and urgency from farmers reflects this. We’ve seen a number of growers try to offload poorer quality feed in recent weeks as the late winter rain looks to be enough to provide another strong production season.
  • In the north it’s a different story altogether. Queensland regions have suffered through a particularly dry winter and crops are doing it tough. Reports this week suggest that as farmersrealisethe chances of a good harvest are dwindling, more will need to reenter the market but at the moment there is continuing reluctance to commit to buy.

    Read more ...

Hay Report - 25 August 2017

National Summary

  • Varied levels of supply and demand now exist around the country with contrasting reports from the north and south.
  • Southern regions continue to have good access to fodder. Cereal is particularly strong and a lower demand and urgency from farmers reflects this. We’ve seen a great deal of growers try to offload poorer quality feed in recent weeks as the late winter rain looks to be enough to provide another strong season. Some of this feed is trading at below the suggested pricing scale to get the market moving or to allow for hefty freight costs heading north.
  • In the north it’s a different story altogether. Queensland regions have suffered through a particularly dry winter and crops are doing it tough. Reports this week suggest that as farmersrealisethe chances of a good harvest are dwindling, more and more are reentering the market and buying hay while they can. Most feed is now coming from down south and price is on the up.

    Read more ...

Hay Report - 18 August 2017

National Summary

  • There were limited changes to hay prices this week as steady trading continued for the most part around the country.
  • The north still fields most of the demand where fodder supplies are the shortest. Southern Tasmania, eastern Gippsland and patches of both Western Australia and South Australia are equally thin. These regions are places missed by late winter rainfall and are now preparing for a prolonged dry spell through summer.
  • The prospects for the rest of the country are looking increasingly positive however. Growers have reported a vast improvement in winter crops throughout August with key hay making regions in the Goulburn Valley and Southeast South Australia at the forefront of the turnaround. With good rain and some warmer days in the past week, most southern regions are headed for another good harvest.
  • As harvest draws closer, we are seeing more and poor quality hay enter the market as growers try to offload feed to make room in sheds. There continues to be little market for this though, as farmers push for quality and longer term benefits.

    Read more ...

Hay Report - 4 August 2017

National Summary

  • Hay prices remained steady across most regions this week and continue to hold well back from this time last year.
  • The price of fodder is in many cases reflective of its quality. The feed on offer this year is testing worse than that of previous years and the prevalence of damaged hay is much higher due to inclement weather, oversupply and mice. That’s not to say there isn’t quality available, because there certainly is and demand has lifted in recent weeks for premium cereal particularly. Some growers are holding onto this better quality feed now however, in hope of a better price later in the year. This has made sourcing top quality feed gradually more difficult.
  • The same can’t be said for poorer quality feed which is still on offer in abundance in the south. A great deal of growers are now looking to clear sheds to make room for the coming season and farmers have in the past week started to become interested. With the prospect of a long dry summer a distinct possibility, there is the potential for more purchasing at the bottom end as farmers seek a backup feed option.
  • What is most important when buying feed at the moment is knowing it’s quality in order to best determine its use in your business. This requires and feed test and mould and yeast test. We also urge buyers to carefully inspect the product before purchase and use only trusted suppliers.

    Read more ...

Hay Report - 28 July 2017

National Summary

  • Hay trading continued at a steady pace in most regions around the country this week. While most demand is still coming from the north, farmers in the south have steadily reinstated their interest in purchasing feed.
  • Some price fluctuations were noticed this week and in most cases this saw hay prices on the rise. There continues to be a great deal of variability in quality on offer and with more hay now trading, this is resulting in a wide pricing range for some areas.
  • There has been a noticeable shift over winter with farmers shunning the cheaper feed and opting to spend more to ensure good hay. Sourcing good quality protein hay and straw is becoming increasingly difficult.
  • While much on the country has experienced a fair at best winter of rainfall, there is an expectation that demand and potentially price will grow next season. Some hay traders are even suggesting that without a stellar harvest this year the oversupply may become an undersupply, particularly in the north.
  • As always, we strongly advocate for getting a feed test and carefully inspecting fodder before purchase. Weather damaged and pest damaged (particularly mice) products are in abundance and will need to be carefully considered to ensure value for money no matter the advertised price of hay.

    Read more ...