Hay Report - Will the rising Grain prices lift Hay sales

For the fortnight up to the 29th of March 2022.

By Dwain Duxson

Will the rising Grain prices affect Hay sales? It's a question Farmers with Hay stocks are asking. 

We haven't seen any real evidence of it just yet, but I guess the intensive feeders will crunch numbers and look for ways to bring down feed costs. Adding more Hay or Straw to the mix might be an option.

We have seen an ongoing lift in demand for Hay in the last month and a slight rise in prices along the way. Like everything, the effect of input costs, Freight and Labour will all play a part in the baseline price of Hay, which probably has to lift.

We are also starting to see pockets in South Australia, Tasmania and Victoria having a dry Autumn. Some might have received some rainfall which might have activated some green feed, but the balmy Autumn days wilted that away. These guys are looking for Hay to supplement until more rain arrives.

I guess we all have weather theories.... One wise old Wimmera Farmer told me it rarely rains in April after a good year. Not sure if he is using data or his gammy knee has stopped playing up, but it was an interesting comment all the same.

When we say the price has risen, it's not been a hell of a lot, and there are still plenty of bargains out there. If you are looking to buy decent-sized parcels, you may be in a position to negotiate on price, as some are just wanting their Hay off the books.

Shane mentioned below that he sold a good-sized parcel to an Exporter, so they must have some new orders in the pipeline outside China.

There has been a lot of Vetch, and Oat Seed sold on Farm Tender in the last few months. This is a sign that Croppers are still keeping Hay in the rotations. But, with Urea prices so high, we might see some of that Vetch Seed sown down to fix nitrogen into the soil. Grazing is also an option.

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

The bigger parcels that sold this fortnight were Cereal Hay, as opposed to Vetch Hay the fortnight before.

Price is quality-based, but there can also be a discount for buying in bulk if you come across the right seller. The range in Cereal Hay prices has been from $125 to $200 per tonne.

Vetch Hay prices are also quality based, with sales prices ranging from $175 to $275 a tonne.

Clover Hay is mirroring Vetch Hay, and Lucerne Hay is in demand.

There was only a small amount of Straw moved, but Mike is getting some demand from Feedlotters up North.

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 - I have seen a slight lift in interest in Hay this week with a few parcels of Cereal shifting. There has been steady enquiry on Protein Hay, with pricing being a sticking point for a lot. With cooler weather approaching, it will be interesting to see if we see more quality Hay hitting the market. 

Shane Ruyg - Qld based

Shane said - Starting to see some bigger lots of Hay sold with a large parcel of Oaten Hay going to the exporters and another 500 tonne lot going to Southern Victoria. Apart from this, it has been spot loads here and there. Fuel prices are obviously having an impact, and we are hearing prices of around $6.50 per km for a B Double Load. 

Mike Pickard - Travelling around 

Mike said - Inquiry for Hay is picking up slightly as we head into the cooler months. Farmers are starting to fill a few sheds to get them through winter. There is a little bit of inquiry picking up for small Feedlotters chasing Straw for feed mixes.

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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