Hay Report - A drop off in acres sown for Hay Production

For the fortnight up to the 10th of May 2022.

By Dwain Duxson

It's been a bit of an up and down fortnight for Hay sales. Our sales guys, Mike and Paul, recorded a lift in sales, and Shane said sales dropped for him. 

Vetch Hay sales still dominated the spreadsheets once again. But there was a smattering of other Hay sold, this included Oaten, Lucerne, Rye Grass, Clover and Rye and Clover Hay. 

It's that time of year when many are flat stick with the winter Cropping program, so those guys are not thinking about buying or even selling Hay. In South Australia, however, it's a little on the dry side with many delaying sowing until they get a decent break.

We are hearing the opposite in areas of Queensland and Northern NSW, with many saying it's too wet to get on paddocks, and that's before this latest drop.

The Weekly Times is reporting another decent drop in acres sown to Cereal Hay in Eastern Australia, that's on top of a 30 percent reduction last year. All up, it could be a 50 percent drop in the last two years. That's significant and will have more of an effect on the Export job. At $1000 a tonne for Canola, that's something swaying many away from Hay production. 

I found this interesting news below where China imported a record amount of Lucerne Hay in the January to March quarter. Interestingly non from Australia. 

According to customs statistics, from January to March this year, China imported 410,700 tons of Alfalfa (Lucerne) Hay, up 40.1% year on year; The import amount was USD181.8865 million, an increase of 74.3%; The average CIF price is USD442.84 / ton, up 24.4% year on year.

The imported Alfalfa Hay mainly came from the United States, reaching 306,500 tons, accounting for 74.6%, up 16.2% year on year; The import amount was up $143.5394 million, up 50.8% year on year; Import price 468.35 USD/ton, up 29.8% year on year; Secondly, 53,700 tons were imported from Spain, accounting for 13.1%, up 382.9% year on year. The import amount was 17.9506 million US dollars, up 461% year on year; Import price 334.53 USD/ton, up 16.2% year on year. 41,900 tons were imported from South Africa, accounting for 10.2%, up 342.5% year on year. The import value was 16.7734 million USD, up 434.7% year on year; The import price was USD400.49 / ton, up 20.9% year on year. There are also small imports from countries such as Canada, Italy, Sudan, Bulgaria, Argentina and Romania.

What's happened to Hay prices over the last fortnight?

Vetch Hay prices lifted a little from the last fortnight, we had one parcel of absolute A1 quality making $305 a tonne. It tested in at 21.4P, 10.5ME and 35NDF. Two other decent lots made $275 and $250 a tonne, and a load of Vetch and Medic Hay made $220 a tonne. 

Good quality Oaten Hay made $205 a tonne.

Pasture Hay made $180 a tonne.

A large parcel of Oaten and Rye Grass Hay sold for $140 a tonne after it was reduced in price.

Lucerne Hay was selling at around $305 a tonne.

There was not much Straw sold.

All prices quoted are ex GST and ex Farm.

We go around the grounds to see what our Farm Tender Salespeople have to say:

Paul Grayling - Mallee, Vic based

Paul said - Over the past fortnight, we have seen a continuing lift in Hay Sales with the cold weather arriving. People are looking to fill the Shed with some quality Fodder, this is appearing a little harder to find than in previous years, but there are plenty of options if you are patient enough to hunt them down. Transport costs are definitely playing a part in decisions being made. 

Shane Ruyg - Qld based

Shane said - A quiet fortnight for me on the Hay job with only a few sales. The planting season is in full swing, which means buyers and sellers are busy doing other stuff, but this will change once things get back to some normality.

Mike Pickard - Travelling around 

Mike said - Inquiry for Hay has picked up with a lot of Farmers in central to southern New South Wales purchasing Hay to put away for later in the year. Grass Hay and Clover Hay is popular coming out of Victoria, while Lucerne Hay is popular out of central New South Wales.

End of message

For more information on selling or buying Hay contact the following:

Paul Grayling – 0447 069 082 or paulg@farmtender.com.au

Shane Ruyg – 0447 922 604 or shaner@farmtender.com.au

Mike Pickard – 0429 677 636 or mikep@farmtender.com.au

Or 1300 Farming (1300 327 646)

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