Grain - Hay Report - 12 July 2013

International & National Summary - Grain:

  • Weather permitting, larger global crops and rebuilding of grain stock levels over the course of 2013/14 remains likely. But, the “weather market” is still hovering in the background over July-September till the 2013 crops become more secure. With this uncertainty, the market will retain its volatility.
  • Grain prices will more than likely be lower in six months time, but “Mother Nature” still needs to deliver average weather over Jul-Sep, and this remains the main caveat on where the market will head. As a guide, Black Sea exporters are selling their new crop aggressively into the Middle East and North African markets, well below current Australian prices.
  • One potential wild card is China, which has been buying wheat over recent weeks at a faster pace than originally assumed. New estimates are that due to a damaged local crop China needs to buy 8 million tonnes of wheat in 2013/14 compared to around 3-4 million tonnes in 2012/13. This news has kept the global wheat market firm in the last fortnight.
  • The local crops in Australia are advancing well for this early in the season. Good rains in the past week through WA, SA, Victoria and southern NSW have kept the crops on track for average yields at this stage. As always, it will be the spring time weather which really sets the yield.
  • Old crop supply of feedgrains is tight on the east coast of Australia due to strong feedlot demand and an active export program. For that reason, we may not see the full reductions in grain prices on the east coast until our new crop arrives in Nov/Dec. A message out of this is don’t assume supply will be available freely from August-October unless you have had discussions with your feed supplier about your requirements. There may be price spikes in this period if users are caught short.
  • If all the stars line up around the world for good crops between now and October 2013, and if the A$ stays above 90USc, a price drop of $50 by Christmas would not be a surprise.
  • For the last week, the local grain market traded about $5-10 lower in Queensland and northern NSW, with south-east Australia, SA, WA and Tasmania mostly unchanged to $5 lower.
  • The most important issue for dairy farmers is not trying to pick the bottom of the 2013/14 grain market, but to manage their margin-over-feed-cost risk and make a start on covering their forward grain needs if the quoted prices allow them to make a margin, taking into account the 2013/14 milk pricing which has been announced by the milk processors over the last month.

National Summary - Hay:

  • In most parts of the country fodder prices have remained steady this week. Traders are indicating demand has started to ease slightly, due to the lack of supply and high cost of fodder.
  • Buyers are looking to alternative fodder sources such as almond hulls, which can be blended with straw in place of cereal hay. Delivered to Victoria the price for almond hulls varies from $115-$140t depending on the location.
  • Freight is still a big contributing factor to the cost of hay as buyers struggle to source supplies of fodder locally. This is a big issue for regions such as Gippsland where the straw price is over $200t landed into the region.
  • With freight adding a large cost to fodder prices, it is worth considering the quality of the product being purchased. It might work out more cost effective to purchase higher-grade oaten hay at a higher price than to pay freight on lower grade fodder. Remember to always get a feedtest before purchasing fodder.
  • Demand for fodder on the North Coast of NSW has started to pick up in the last few weeks and this week prices rose in the region. Cereal hay and lucerne in big squares are most sought after but traders are finding it very difficult to source fodder to supply the region.
  • There has been increased interest in south west Victoria for late sown dual purpose oat crops put in with the intention to make hay later in the year.
  • The season in WA has dried of considerably over the past few weeks. Although there was patchy rain across the state over the past week most are forecasting reduced crop yields, particularly in the eastern wheat belt where it is very dry. There will be serious concern for the fodder season ahead in WA if there are no substantial rain events in the near future.
  • Most areas of QLD remain very dry and fodder has been sourced from as far away as Central SA and southern Victoria to supply desperate buyers through the region. Areas that have access to water and can bale lucerne have been selling their hay straight behind the baler.
  • Reports of graziers in south west Victoria, South East South Australia and the Wimmera-Mallee turning livestock onto winter crops and pastures initially intended for hay could be an indication that fodder shortages might be set to continue into 2014. This will depend on the season, particularly rainfall events in late winter and early spring.
  • We continue to see a trend where growers who have a relationship with a supplier have been able to source fodder and avoid paying the high spot market prices. This should be considered by anyone who will have a requirement to buy in fodder for 2014, especially as we get closer to the 2013 fodder harvest. Fodder is already in short supply and there will be very little, if any carry over fodder into 2014. Buyers are urged to consider their fodder needs for 2014 and initiate discussions with their suppliers or hay traders as early in the hay season as possible.
  • We are hearing more and more reports of both buyers and sellers getting burnt in fodder transactions as the market becomes tighter. It is important to ensure that both buyers and sellers look out for themselves by using written contracts for all fodder transactions, especially in current circumstances. If you would like more information on written contracts for hay please contact the AFIA office on 03 9530 2199.

This report has been commissioned by Dairy Australia to provide an independent and timely assessment of grain and hay markets in each dairying region. It should be remembered that actual prices may vary for quality or other reasons. All prices are quoted are exclusive of GST.

The information in this report is collected and disseminated with due care and attention to its accuracy, but Dairy Australia accepts no liability if, for any reason, the information is inaccurate, incomplete or out of date.

19 July 2013

Grain

Wheat

Barley

Maize

Sorghum

Atherton Tableland

Price Range

$379

$389

$423

$433

$378

$388

$369

$379

 

Change

-$16

-$5

$0

-$5

           

Darling Downs

Price Range

$343

$353

$346

$356

$330

$340

$309

$319

 

Change

-$6

$0

$0

-$4

           

North Coast of NSW

Price Range

$376

$386

$394

$404

$370

$380

$329

$339

 

Change

-$6

-$5

$0

-$4

           

Central West NSW

Price Range

$258

$268

$247

$257

$375

$385

$343

$353

 

Change

-$7

-$5

$0

-$2

           
   

Wheat

Barley

Triticale

Oats

Bega Valley

Price Range

$282

$292

$267

$277

$281

$291

$298

$308

 

Change

-$3

-$3

$0

$3

           

Goulburn/Murray Valley

Price Range

$280

$290

$259

$269

$269

$279

$240

$250

 

Change

$3

$0

$0

$3

           

Gippsland

Price Range

$317

$327

$301

$311

$312

$322

$253

$263

 

Change

-$2

$0

$0

-$5

           

South West Victoria

Price Range

$286

$296

$253

$263

$280

$290

$234

$244

 

Change

$3

$0

$0

$3

           

South East South Australia

Price Range

$296

$306

$269

$279

$280

$290

$230

$240

 

Change

-$2

-$4

-$10

-$2

           

Central Districts of SA

Price Range

$305

$315

$263

$273

$280

$290

$223

$233

 

Change

$5

-$2

$0

$0

           

South West of WA

Price Range

$317

$327

$292

$302

$290

$300

$215

$225

 

Change

$6

$0

$0

$0

           

Tasmania

Price Range

$395

$405

$375

$385

$368

$378

$323

$333

 

Change

$5

$0

$0

$3

Notes: Prices are estimates based on delivery to dairy farms with allowance for freight, storage, and marketing costs, but exclusive of GST. Wheat prices are for the relevant stockfeed wheat available in a region (ASW, AGP, SFW1 or FED1) and F1 for barley.

19-Jul-13

Hay

Cereal

Lucerne

Straw

Pasture

Atherton Tablelands

Price Range

N/A

 

N/A

 

N/A

 

$265

$285

 

Change

     

Steady

                   

Darling Downs

Price Range

$300

$330

$400

$450

$120

$150

$180

$200

 

Change

Steady

Steady

Steady

Steady

                   

North Coast NSW

Price Range

$280

$320

$350

$400

NA

NA

$150

$170

 

Change

+20

+50

N/A

Steady

                   

Central West NSW

Price Range

$280

$300

$330

$360

$115

$135

$145

$155

 

Change

Steady

Steady

Steady

Steady

                   

Bega Valley

Price Range

$300

$330

$350

$400

$160

$180

$160

$180

 

Change

Steady

 

Steady

 

Steady

Steady

 
                   

Goulburn / Murray Valley

Price Range

$310

$330

$350

$400

$115

$155

$220

$250

 

Change

Steady

Steady

Steady

Steady

                   

Gippsland

Price Range

$350

$400

$380

$420

$200

$220

$280

$300

 

Change

Steady

 

Steady

 

Steady

 

Steady

 
                   

South West Victoria

Price Range

$330

$360

$350

$400

$130

$160

$260

$280

 

Change

Steady

 

Steady

 

Steady

 

Steady

 
                   

South East South Australia

Price Range

$300

$330

$320

$330

$140

$160

$250

$280

 

Change

Steady

 

Steady

 

Steady

 

Steady

 
                   

Central Districts SA

Price Range

$250

$300

$300

$350

$120

$130

-

-

 

Change

Steady

 

Steady

 

Steady

 

N/A

 
                   

South West WA

Price Range

$200

$250

$400

$500

$90

$120

$110

$130

 

Change

+20

 

Steady

 

Steady

 

Steady

 
                   

North West Tasmania

Price Range

$205

$225

$300

$350

$135

$145

$180

$200

 

Change

Steady

 

Steady

 

Steady

 

Steady

 

Notes: Hay prices are delivered, GST exclusive based on shedded hay without weather damage, of good quality and colour. It should be noted there is a wide variation in quality for hay, so prices are indicative for a mid-range product.

1. Atherton Tableland – Grain Commentary

Back to Grain Table

  • Mareeba July rainfall: 3mm (Ave: 6.4mm).
  • YTD: 704mm (Ave: 732). Rainfall for this time last year was 816mm.
  • Patchy rains across the area with some looking at as much as an inch.
  • Wheat: $ -16 ($379 to $389). Toss up between wheat or sorghum if going through main grain trade but all CQ wheat is now milling quality and confined to GrainCorp silos.
  • Barley: $ -5 ($423 to $433). Too expensive, supply sources have now moved further south to North West NSW.
  • Corn prices $ +0 ($378 to $388). Suss out any local corn, even gritting corn not contracted could be cheaper to buy that trucked grain up from CQ
  • Sorghum: $ -5 ($369 to $379). Useful as a dairy feed tricked up from CQ. But any local sorghum or feed corn would be cheaper.
  • Kikuyu grass now browning off and of low feed value to stock.

1. Atherton Tableland – Hay Commentary

Back to Hay Table

  • Growers in the region are now preparing for the dry season ahead, taking advantage of good baling weather in the past few weeks to conserve and store fodder. It is anticipated that the strong demand won’t ease in the short term.
  • Continuation of this high demand will depend on how many livestock station owners can afford to keep. Their ability to pay for fodder to feed these cattle will play a key role in this decision.
  • Rhodes grass Hay – Steady- ($265-$285): Supplies of hay are lower than usual, after a dry wet season; however the quality is good as baling conditions have been favourable.

2. Darling Downs – Grain Commentary

Back to Grain Table

  • Toowoomba July Rainfall: 11mm (Ave: 30mm).
  • YTD: 878mm (Ave: 426mm), compared to 459mm this time last year.
  • Very dry the last couple of weeks. Helpful for stripping the last of the January sown sorghum. With short positions grain prices are easing, most of the trading is in sorghum.
  • Wheat: $ -6 ($343 to $353).
  • Feed Barley: $ +0 ($346 to $356). Barley not available, closest source now east of Moree. At equal prices, or at a premium to wheat, barley has no place in winter dairy cow feeding.
  • Corn $ -0- ($330 to $340). Not much trading but the commodity has its advocates for feeding to top producing cows. Best heat-treated as it is in dairy pellet manufacture.
  • Sorghum: $ -4 ($309 to $319). Currently the preferred dairy grain based on price and availability. There were some issues with Downs sorghum stripped in June to meet June 30 contracts but this meant high moisture grain, frosts since then have brought down grain moisture without requiring artificial drying.
  • With export demand for bulk shipments through Brisbane or containers, also through Brisbane, to China, for use in beer manufacture.
  • High moisture sorghum at price discount is a possibility for dairy cows during colder weather

2. Darling Downs – Hay Commentary

Back to Hay Table

  • There is very little fodder available throughout the Darling Downs and the key supply regions, such as Central West NSW. Lucerne is the hardest fodder type to source and growers who are baling have been selling straight behind the baler.
  • Demand remains strong with most of the region (except the south east) remaining very dry, and prices continue to stay high.
  • Cereal Hay – Steady - ($330-$360): Cereal hay is in particularly short supply nationally and is being freighted big distances to meet demand. Small squares of last season cereal hay are trading locally to hobby farmers and the horse industry at $7/ bale.
  • Lucerne Hay – Steady - ($400-$450): Lucerne in large squares is hard to source in the region, and is becoming a growing concern across the country. The horse and hobby markets are the most active buyers presently and paying $12-15/bale for premium quality lucerne where it is available.
  • Straw – Steady - ($120-$150): Feedlots active buyers. The quality is good but there isn’t a lot of reserve stock available locally.
  • Pasture – Steady- ($180-$200): Baling has now finished for summer pastures. There is strong demand from lot feeders and station owners for pasture hay which is driving the price up. Buyers are attempting to secure enough rations for winter.

3. North Coast NSW – Grain Commentary

Back to Grain Table

  • Lismore July rainfall total: 91mm (Ave: 35mm).
  • YTD: 1011mm (Ave: 823mm), compared to 936mm this time last year.
  • SFW Wheat: $ -6 ($376 to $386). All wheat held in storage is now of a human consumption category.Next wheat harvest early October.
  • North coast this week from 5-10mm of rain.
  • Feed Barley: $ -5 ($394 to $404). Barley not available, loosest source now east of Moree and from Gunnedah area of the Liverpool Plains
  • Corn $ +0 ($370 to $380). Most buyers, including dairy farmers are not interested in feed corn. But with the help of a nutritionist there are advantages in winter feeding corn to dairy cows
  • Sorghum: $ -4 ($329 to $339). Best option if grain has to be brought in from other areas. It’s worth keeping in contact with local growers in neighbouring areas.
  • Sorghum cheapest grain, the main component of dairy pellets used in home mixes but better utilisation by cows if first heat treated.

3. North Coast NSW – Hay Commentary

Back to Hay Table

  • Trading activity has started to increase and fodder supply is very low, as a result prices have increased this week.
  • Cereal Hay – +20 - ($280-$320): Cereal hay is very difficult to source at present.
  • Lucerne Hay – +50 - ($350-$400): There is very little lucerne available locally or in other supply regions throughout the state. Hobby farmers are very active buyers presently and due to demand small squares have increased to $14/bale.
  • Pasture Hay – Steady - ($150-$170): With more graziers supplementary feeding cattle this year there has been steady demand for pasture hay. The quality is good but supply is low; therefore if we see a cooler winter it will quickly become hard to source pasture hay locally.

4. Central West NSW – Grain Commentary

Back to Grain Table

  • Forbes July rainfall: 13mm (Ave: 39mm).
  • YTD: 326mm (Ave: 264mm), compared to 492 this time last year.
  • Received 12mm of rain this week, keeping topsoil moistures and crop prospects high.
  • SFW Wheat: $ -7 ($258 to $268). Some concerns that NNSW Graincorp storages may run out before new season grain starts to flow through in October.
  • F1 Barley: $ -5 ($247 to $257). Needs to come down $20 a tonne to have more appeal in home dairy mixes.
  • Corn $ +0 ($375 to $385).
  • Sorghum $ -2 ($343 to $353), not useful unless there is a local supply that doesn’t carry road freight.
  • Crops thickening with drill rows less visible now. Wheat is currently the most cost effective energy source for cow feeding.
  • Corn at $20 over wheat is also worthy of consideration as some nutritionists are very keen on it for winter-feeding of top producing herds.
  • Summer pasture and row crop irrigation prospects good.

4. Central West NSW – Hay Commentary

Back to Hay Table

  • There is strong demand for fodder through the central west but supply is limited. Bulk hay, particularly of lucerne in big squares is now in very short supply.
  • Cereal hay – Steady ($250-$300): There is very little supply locally in large squares. Cereal hay in small squares is in very short supply but trading at $8-10/bale to horse and hobby farm buyers.
  • Lucerne -Steady - ($350-$400): There is still strong competition for premium grade lucerne hay between chaff mills, traders and livestock buyers at the moment. In the past few weeks there have been reports of buyers paying up to $420t on farm for premium grade hay. Good quality small square bales are steady at around $10-12/bale.
  • Straw – Steady ($115-$135): The Central West is not traditionally a big area for straw and there is not a huge supply.
  • Pasture hay – Steady - ($145-$155) – Low grade pasture hay is being snapped up by the livestock market for cheap forage where it is available. Supply is very limited as it is not a regular market for the region.

5. Bega Valley – Grain Commentary

Back to Grain Table

  • Bega July rainfall total: 6mm (Ave: 46mm).
  • YTD: 342mm (Ave: 409mm), compared to 650mm this time last year.
  • SFW Wheat $ -3 ($282 to $292), wheat is preferred when there is only a $15 premium of feed barley, wheat with its superior energy is the grain sought for winter-feeding.
  • Feed barley $ -3 ($267 to $277), frantic buying for delivery prior to June 30 has finished thus allowing the price to ease.
  • Triticale $ +0 ($281 to $291). Supplies not reliably available but some available from southern Victorian merchants working this grain consumption area.
  • Oats: $ +3 ($298 to $308). Stable demand for sheep feeding on the Monaro as the cold winter conditions set in.
  • Seems to be a drift to dairy pellet feeding at this time instead of grain feeding, easier to maintain needed energy, protein and acidosis compounds.
  • The region could do with a heavy rain to level the rainfall off with other large dairy regions in south eastern Australia.

5. Bega Valley – Hay Commentary

Back to Hay Table

  • Fodder to the Bega Valley is coming from Central West NSW, the Southern Tablelands and the Riverina. It should be noted that supplies in these areas are running very low.
  • Available paddock feed, including early sown oaten crops and pastures, is increasing after good rains a few weeks ago and accordingly demand in the region is easing.
  • Cereal Hay – Steady - ($280- $320): Prices remain steady due to easing demand.
  • Lucerne –Steady - ($350-$400): Buyers are searching further afield to source lucerne and it is in very low supply nationally.
  • Straw – Steady - ($160-180): There wasn’t a lot of straw baled in the supplying regions and now there is strong competition from other sectors. High prices are reflecting the lack of supply.
  • Tatura July rainfall: 21mm (Ave: 49mm).

6. Goulburn / Murray Valley – Grain Commentary

Back to Grain Table

  • YTD: 189mm (Ave: 275mm), compared to 379mm this time last year.
  • 12mm across the northern irrigated plains this past week.
  • Wheat: $ +3 ($280 to $290). More buyer interest in wheat now, more consumers keen to lock up supplies for the second half of the year.
  • F1 Barley: $ +0 ($259 to $269), A bit more interest now that the northern pastures are growing, particularly in the Cohuna area.
  • Triticale: $ -0 ($269 to $279). Still running to growers under earlier contract.
  • Feed Oats: $ +3 ($240 to $250). Prices up but northern grain moving either south or into Strathbogie ranges.
  • Farmers spreading fertiliser on paddocks planned for hay. Both cereal and ryegrass.
  • Cereal growers within the district and over in the northwest are anticipating a year of high yields.
  • A long way to go before grain is safely in the bin but things are looking very good.

6. Goulburn / Murray Valley – Hay Commentary

Back to Hay Table

  • Demand for all fodder types remains steady and prices are firm. The high cost of fodder is encouraging buyers to look at other options such as almond hulls and palm kernel meal. Almond hulls can be sourced easily and are being delivered into the region for $115-$125/t.
  • Straw continues to be in steady demand.
  • Cereal hay – Steady - ($330-$350) – Cereal hay is still available from traders but supply is low and as a result prices are remaining firm.
  • Lucerne hay - Steady – ($350-$400) – Supply is now very low and there are no reports of uncommitted lucerne locally. Small squares are also hard to source and are trading at around $14/bale on farm.
  • Straw – Steady – ($130-$170) – Demand for straw has picked up in the last few weeks and remains steady.
  • Vetch - Steady – ($340 - 380) – Vetch is very difficult to source anywhere in the country.

7. Gippsland – Grain Commentary

Back to Grain Table

  • Sale July rainfall: 12mm (Ave: 41.2mm).
  • YTD: 332mm (Ave: 324.9mm), compared to 409.7mm this time last year.
  • Good rain received over the area with most regions receiving between 5-15mm but not as much as the Western District.
  • SFW Wheat: $ -2 ($317 to $327). Despite increasing prices most farmers continue to use wheat or a shandy featuring wheat as the main component.
  • Barley: $ +0 ($301 to $311). Barley still remains an option through winter as prices remain steady.
  • Triticale: $ +0 ($312 to $322). Triticale supply not always available as many growers try to pick the top of the market as the time to sell. Proving not as popular with dairy farmers due to the inconsistent supply. Interest declining for commodity as wheat is easier to obtain.
  • Feed Oats: $ -5 ($253 to $263) Feed oats are in short supply of both milling quality and feed qualities and are currently in demand for sheep feeding throughout the Gippsland region.
  • Expect there will be surplus cow feed come spring.
  • Gippsland remains wet and soggy and the cold overcast weather is impeding pasture growth.

7. Gippsland – Hay Commentary

Back to Hay Table

  • Demand for fodder has eased slightly, prompted by the low supply of fodder and high cost of freight into Gippsland. Buyers are seeking cheaper alternatives such as palm kernel meal, and almond hulls, which can be delivered into the region for around $130-140/t.
  • Cereal Hay –Steady- ($350-$400) – Supply of cereal hay is low but it is still accessible. The high cost of cereal hay is prompting buyers to look for alternatives like almond hulls and straw.
  • Lucerne Hay – Steady – ($380-$420) – Lucerne hay is in vey short supply nationally.
  • Vetch – Steady– ($400+) – There is very little available nationally.
  • Straw – Steady - ($200-$220) – There is still some straw available being sourced from Central Victoria and the Wimmera-Mallee. Demand for straw is steady as buyers seek functional fibre and cheaper alternatives to cereal hay. However the freight back to Gippsland is adding significant cost for buyers who are advised to carefully calculate costs based on their nutritional requirements when looking to freight straw.
  • Pasture – Steady – ($280-$300) –Very short supply of any grade pasture hay across Southern Australia, including the usual local supply of round bale pasture which has been cleaned out.

8. South West Vic – Grain Commentary

Back to Grain Table

  • Port Fairy July rainfall: 77.6mm (Ave: 93.9mm).
  • YTD: 369.4mm (Ave: 401.5.5mm), compared to 447mm this time last year.
  • Western District received 20 to 30 millimetres of rain this week.
  • SFW1 Wheat: $ +3 ($283 to $293). Dairy farmers looking for wheat to provide extra energy to the cows through mid winter. Both red and white wheats are equally priced.
  • Feed Barley: $ +0 ($253 to $263). At a $33 discount to wheat it makes the current barley price attractive. Nevertheless most farmers are staying with Wheat in the wet conditions.
  • Triticale prices $ +0 ($280 to $290). Not much activity on Triticale at present with supplies limited.
  • Feed oat $ +3 ($231 to $241). Oats are in short supply but are being used to mix with cereal straws to allow longer rotational grazing of dairy products. Strong demand at present.
  • Paddocks are wet however there is very little feed in short sappy grass.
  • Many paddocks are unusable at this time due to possibility of pugging and then the requirement of levelling later.

8. South West Vic – Hay Commentary

Back to Hay Table

  • Available paddock feed is low but recent rain has added confidence for the fodder season ahead.
  • There are reports of increased interest in late sown dual purpose oats being sown now with the intention of hay cut later in the year.
  • There is still active demand for hay in the region however supplies of cereal hay are limited stock released from exporters and other small stocks of straw coming from the Wimmera-Mallee and SA. As per other dairy regions buyers are looking to cheaper alternative feed sources like almond hulls which are trading for around $120-130/t delivered into South West Victoria.
  • Prices remain firm but steady this week.
  • Cereal - Steady- ($330 - $360): It is difficult to source cereal hay at the moment, where there is cereal hay available it has mostly come from the exporters and is high to premium grade hay therefore sellers are asking a premium price.
  • Lucerne – Steady - ($350-$400): The usual suppliers of lucerne from North Central Victoria and South East South Australia are very low or completely out of stock.
  • Straw – Steady - ($130-$160): There is still some straw sourced from the Wimmera-Mallee and SA. High grade barley straw is priced between $120-$140 ex farm; wheat straw is about $100-$110 ex farm.
  • Pasture hay – Steady - ($260 - $300): Pasture hay is in short supply and very difficult to source across the state.

9. South East SA – Grain Commentary

Back to Grain Table

  • Mount Gambier July rainfall: 26.8mm (Ave: 99mm).
  • YTD: 319.4mm (Ave: 396mm), compared to 374.4mm this time last year.
  • Another good week of rain with areas receiving up to 35mm enough to maintain wet paddock conditions.
  • Wheat $ -2 ($296 to $306). Dairy farmers are still demanding wheat for higher energy to the cows in the winter months.
  • Feed barley $ -4 ($269 to $279). Up on exporter bidding which is expected to remain firm through to new southern Australian grain harvest.
  • Triticale $ -10 ($280 to $290). Supplies of triticale are limited not allowing prices to firm.
  • Oat prices $ -2 ($230 to $240) Oats still remain a useful source of sheep feed in the cold conditions but supply of the commodity is limited at this time of the year.
  • Incoming crops in both the western Victoria and south east South Australia as well as the Murray Mallee are improving with June and July rains.

9. South East SA – Hay Commentary

Back to Hay Table

  • Rain has been patchy through South East SA but in general the season is shaping up well, despite a late start.
  • Fodder prices remain steady this week and demand has eased as farmers are now starting to graze winter crops and pastures. As some of these crops are intentioned for hay follow up rain will be essential for a good fodder harvest and to avoid another fodder shortage in 2014.
  • Cereal –Steady- ($300-$330): Cereal hay is becoming very difficult to source.
  • Lucerne – Steady - ($320-$360): Supply is becoming very low through the region.
  • Straw – Steady - ($140-$160): Trading has picked up however there is little in excess throughout SA.
  • Pasture – Steady - ($250-280): Pasture has been snapped up early by the livestock buyers and is becoming harder to source now.

10. Central SA – Grain Commentary

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  • Murray Bridge July rainfall: 28.5mm (Ave: 34.9mm).
  • YTD: 207.7mm (Ave: 189.6mm). 302.9mm this time last year.
  • South Australian crops are looking really good with another good rain for central district grain and dairy areas.
  • Wheat $ +5 ($305 to $315). Wheat proving to be very expensive on absolute terms when compared to feed Barely. With paddock feed now freely growing it won’t be long before Barley has more appeal to dairy farmers.
  • Feed barley $ -2 ($263 to $273), It is now a very wide price margin to wheat and continuing to increase. Such a price discrepancy encourages feed barley to be used on dairy cows.
  • Triticale $ +0 ($280 to $290). Good value at any discount to wheat but supply remains limited.
  • Feed oats $ +0 ($223 to $233). Less sheep demand currently for oats with paddock feed increasing.
  • SA prospects remain better than any state at current grain production stage and rains this week continue to sink lower into the soil profile.
  • Still another two weeks of heavy grain feeding required for dairy farmers.

10. Central SA – Hay Commentary

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  • Growers in Central SA are experiencing excellent growing conditions this season and are optimistic about the hay season ahead.
  • Prices remain firm and fodder continues to move big distances to fill the supply shortage in Southern Australia. Accordingly fodder supply locally is getting very low.
  • Cereal Hay - Steady- ($250-$300) –Where cereal hay is available, quality is very high.
  • Lucerne – Steady- ($300+) – Low supply is due to limited acreages and poor results from dryland Lucerne in SA this year. There appears to be no big quantities of Lucerne available anywhere on the domestic market.
  • Straw – Steady - ($120-$130) – Any straw on farm is likely to be under contract but demand from the domestic market is fairly quiet at this stage.
  • Vetch – Steady ($300+) – Where available growers are asking top dollar for good quality vetch hay.

11. South West WA – Grain Commentary

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  • Bunbury July rainfall: 51.6mm (Ave: 142.9mm).
  • YTD: 340mm (Ave: 457mm), compared to 378.2mm this time last year.
  • A much needed rain for both the grain growing regions as well as the dairy areas. Conditions are very cold for WA standards with Harvey receiving 38mm and Bunbury 26mm.
  • Wheat: $ +6 ($317 to $327). Priced at a $25 premium to Barley so there may be some good competition despite wheat being the natural winter energy choice for cows.
  • Feed barley $ +0 ($292 to $302). Barley prices remain steady and are becoming a reasonable alternative with Wheat prices rising for a consecutive week.
  • Triticale $ +0 ($290 to $300). Triticale supplies are not coming forward on the market as regularly despite some growers maintaining they have untouched triticale stored on farm.
  • Oats +0 ($215 to $225). Less demand for triticale as more paddock feed for sheep becomes available
  • Protein sources are proving to be extremely expensive with Lupins $365 at Perth and a lower $A increasing prices of soybeans.

11. South West WA – Hay Commentary

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  • Demand for hay is increasing in the key dairy and livestock regions of the state due to the lack of rain.
  • Parts of WA, particularly the eastern wheat belt have dried off quickly which could compromise their fodder harvest for 2013. Good widespread rain is needed across WA soon.
  • Cereal hay – +20– ($200-$250): Cereal hay prices have increased this week due to the rising demand from the domestic market.
  • Lucerne – Steady - ($400-$500) – Demand for Lucerne has increased, supply is running low and chaff mills are active buyers of premium quality hay. The main domestic activity is from local horse markets and prices are peaking at around $470/t on farm.
  • Straw – Steady- ($90-$120): There is very little straw available for trading throughout the state. There is some lower grade straw around that didn’t make export grade after being rained on before baling.
  • Pasture - Steady ($110 - $130): There seems to be good stocks of pasture hay available to trade.

12. North West Tasmania – Grain Commentary

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  • Smithton July rainfall: 101.6mm (Ave: 108mm).
  • YTD: 365.8mm (Ave: 475mm), compared to 495.2mm this time last year.
  • North West coast had anything between 40 to 85mm.
  • Wheat $ +5 ($395 to $405). Prices continue to rise, as there is strong demand to keep milk production up during the cold conditions of mid winter.
  • Feed barley $ +0 ($375 to $385). Australian feed barley mainland prices steady.
  • Triticale prices $ +0 ($368 to $378). Mainland triticale is on offer and represents a good buying opportunity in the colder weather if priced at a discount to wheat. Not all triticale sellers on mainland are geared to box them Tasmania.
  • Oats prices $ +3 ($323 to $333). Price rises are reflected by a severe shortage of the commodity on the mainland. Oats are being used with grass hay to boost energy for cows in Midlands and for sheep feed.
  • Conditions are extremely cold and wet inhibiting pasture growth.
  • Wheat prices continue to firm, as it remains a popular feed grain for home mixes for winter production.

12. North West Tasmania – Hay Commentary

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  • With very limited supplies of fodder throughout Tasmania buyers have been seeking ryegrass straw and any other type of roughage they can source to get through winter. It is very cold and there is very little paddock feed available.
  • Cereal Hay – Steady - ($205-$225): Stocks are very low due to lack of production for fodder and high competition in the grain sector.
  • Lucerne – Steady - ($300-$350): Lucerne supplies are limited; silage in particular is in high demand but not easy to source.
  • Straw – Steady - ($135-$145): Given the dry harvest conditions the quality of straw is high and is starting to move now, with demand at this time of year coming from mainland mushroom growers.
  • Pasture Hay – Steady - ($160-$200): The supply of pasture hay low this year.