Farmers shun planting Crops for Hay production.
For the fortnight up to the 6th of April 2021.
There seems to be some uncertainty around some export Hay Contracts into China. According to this ABC article, they are not sure whether it's all related to the China trade tensions or for some other reason. Or it just could be Rumour.
We are hearing that there are only 2 exporters that are Victorian based who have retained contracts, but we don't know that for a fact.
The negativity around this and the lack of consistent demand is turning Farmers away from planting Crops for Hay production, Cereals especially. Many Farmer we speak to are dropping the Hay paddocks off the rotation until the market improves. If the ABC article is correct, then who wants to be caught with Export Hay to sell and no market.
The Export market was always been a bit more stable and consistent than the domestic market. Having something like this is a stomach punch for the Hay market in general.
So let's focus on the domestic market and what's happened in the last fortnight. Sales have been going along ok, probably mirroring the level we have seen since the market picked up six weeks ago. As the sales guys point out below, Vetch Hay is dominating the sales spreadsheets.
Mike reports that the last major East Coast rain event has dried up demand for Hay in Queensland. I am sure it's similar in Northern NSW. We hear that areas around Yeoval-Wellington (NSW) have had a terrific time since the drought broke with green feed all the way through. These guys have turned of plenty of fat Stock, and it continues to roll on.
It looks like we are in a bit of a holding pattern for rain with the Autumn highs dominating. Apart from WA the 10-day outlook is light on for rain. If the Autumn stays dry, then this could change things leading into Winter. Jackie reports that the South West of Victoria has noticeably dried off in the last fortnight.
What's happened to Hay prices over the last fortnight?
Good quality Veth Hay is selling at $200 a tonne. The lesser weather-damaged stuff from this season is making $125-$155 a tonne.
We sold bugger all Cereal Hay in the last fortnight.
Straw is hard to sell, but the stuff that is selling goes for around $60-$65 a tonne.
Lucerne Hay is making around $220 a tonne.
We go around the grounds to see what our Farm Tender Salespeople have to say:
Paul Grayling - Mallee, Vic based
Paul said - Not a lot has broken on the Hay front since the last Report. Protein Hay has continued on its merry way and is getting put away in the shed for Winter. Pricing still needs to be sharp to shift anything less than top-notch product. Oaten and some Cereal Hay is being enquired about, but it's still very much a buyers market and buyers can be very fussy and find exactly what they are chasing.
Shane Ruyg - Queensland based
Shane said - A good couple of weeks again on the Vetch Hay side of things with most of it going down South into mainly the Cattle job and also a bit in the Dairy. Still not much happening with Straw or Cereal Hay.
Mike Pickard - Darling Downs, Qld based
Mike said - Good rain across Southern and Central Queensland have slowed everything down to next to no inquiry on Hay. Talking to a Hay producer this morning, he said he cannot do enough Lucerne small squares for his clients. Most of his clients are in the Horse industry with bales in his area (Wide Bay/ Burnett, Qld), selling for around the $16-$17 mark.
Jackie Elliott - South West, Vic based
Jackie said - Pasture Seed has been in demand this year in South West Vic with Canola Seed in short supply. Some Farmers are introducing Cereals in their farm plans, ideally for Grain, depending on frost effects later in the season. Victoria's South West has certainly dried out over the past fortnight, with some missing out on the last big East Coast rain event. No doubt cooler weather on the way, which should encourage Hay purchases.
Talk soon, EOM
For more information on selling or buying Hay contact the following:
Paul Grayling – 0447 069 082 or [email protected]
Shane Ruyg – 0447 922 604 or [email protected]
Mike Pickard – 0429 677 636 or [email protected]
Jackie Elliott - 0400 808 550 or [email protected]
Murray Jones (WA only) - 0474 808 160 or [email protected]
Or 1300 Farming (1300 327 646)
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