Farm Tender Hay Report - Have the domestic Hay market dynamics changed forever?

Have the domestic Hay market dynamics changed forever?

For the fortnight up to the 23rd of March 2021.

Firstly, what's happening along the coastal areas of New South Wales is devastating, and our best wishes go out to those guys in the thick of it.. What a monumental disaster. I cannot imagine what the Farmers in these areas are going through.

It really seems a bit heartless to start commenting on the state of play in the Hay game when many are going through so much. But knowing Farmers as they are, those guys going through such devastation would be wanting the rest of us to get on with it and keep the Ag industry going. 

On the flip side of this, the rain has been beneficial for Farmers in parts of the NT, QLD, NSW and Vic. WA representative Murray Jones reports that every Farmer he spoke to in the last week has been on the Boomspray after good rains there. 

Where does all this leave the domestic Hay Market?

In the last four weeks, the market has been the best it has been for 12 months. I can safely say that the amount sold in the last month would equate to, or surpass what was sold in the 11 months previous. 

Will the rain halt the demand in its tracks? We think that might be the case.

Also, with many Sowing/Seeding decisions being made as we write, the trend looks like steering away from Sowing Crops for Hay production. This is a given, it seems. 

We have records back 9 years telling us that on average, there is a prolonged period of demand for Hay about every 18 months. We think since the end of the drought 12 months ago, Farmers who were caught out paying big money for Hay from the South, and even more expensive Freight rates are not going to get caught out again. Such was the investment we saw in Hay making gear, Sheds, etc, by these Farmers. 

It just might be that the domestic Hay Market dynamics have changed. I guess we won't know the full answer to that until the next dry time. 

We are already starting to see many donate Hay and Straw to those suffering. It's such a kind gesture, and we take out hats off to those donating Hay and also freight, Loaders, time etc

For the next Hay Report, we might include a WA perspective from Murray Jones. Watch this space.

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

Vetch Hay sales are happening in the $145-$200 a tonne range, a slight lift at the higher quality end. 

Some really good quality Wheaten Hay made $180 a tonne last week. This is a bit of a one-off price, with most Cereal Hay making $110-$120 a tonne

Straw sold for between $60 to $77 a tonne. 

Lucerne Hay is still 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 - I have seen a slight lift in inquiry on Hay over the last fortnight. With some big numbers around in the way of rain, it will be interesting to see how this affects the demand side of things. It seems more sellers are meeting the market, which is helping with sales. Quality is still the key and a priority. Old season Hay out of the shed continues to sell fairly promptly when it's offered.

Shane Ruyg - Queensland based

Shane said - Another solid fortnight on Vetch Hay sales with clients down South looking to put a bit away for the Winter and stack their sheds while it's cheap. I also sold a small amount of Cereal Hay, and Straw but nothing to write home about. The rain that is happening from QLD to VIC isn't going to help the Hay job as there will be lots of feed about after the massive deluge we are currently seeing.

Mike Pickard - Darling Downs, Qld based

Mike said - Good soaking rain across New South Wales and Southern Queensland have left reasonable to good moisture levels for the winter season. A good parcel of Cereal Hay sold from the Riverina to Northern Victoria to a Dairy around that $170 to $180 a tonne mark. Straw is still hard to shift, although the odd spot load is going out.

Jackie Elliott - South West, Vic based

Jackie said - I have sold some Vetch Hay parcels listed for between $155-$165 a tonne out of Victoria's North Central and Mallee areas. Locally here in the South West of Victoria, we have sold a couple of parcels locally in the past fortnight with inquiries being continually received. 

Talk soon, EOM

Dwain Duxson - Farm Tender & DelayPay

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

Jackie Elliott - 0400 808 550 or jackiee@farmtender.com.au

Murray Jones (WA only) - 0474 808 160 or murrayj@farmtender.com.au

Or 1300 Farming (1300 327 646)

Need to buy something? Try DelayPay

Payment terms for buyers and a spendable credit limit in 24 hours, go to www.delaypay.com.au. If you are keen to know more ring Kelsey 0409 117 730 or Dwain 0427 011 900

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