Hay Report - Change in conditions!

Over the past fortnight, the landscape has changed significantly across the Northern States. Widespread frosts have swept through the New England and Tablelands regions of NSW, while parts of Southern Queensland have now been drought declared, with Goondiwindi reportedly the first of what could be many affected areas.

For the hay and straw market, this is likely to see demand strengthen once again. Producers in drought-declared regions may become eligible for freight subsidies and other assistance, which should help support hay movements into these areas. That said, there are still many variables to play out. Many livestock producers will weigh up options such as de-stocking, agistment, or supplementary feeding before committing to larger hay purchases.

Further south, conditions are gradually drying out and many cropping regions are shaping up for what could be a bumper season. However, as we all know, there are still plenty of hurdles between now and harvest. Frost, insect pressure, disease such as rust, and the possibility of a dry finish all have the potential to reduce yields. We are also hearing reports of some crops being well advanced and carrying heavy biomass for this time of year, increasing the risk of lodging if conditions turn against them. Fingers crossed the season continues to track well and growers can realise the strong yield potential currently on offer.

From a pricing perspective, we are seeing sellers reduce their hay and straw prices to more realistic levels that better reflect current market conditions and demand. As we move closer to the new season in the southern states, we could see increased volumes coming onto the market if seasonal conditions continue to hold. This is likely to place further downward pressure on prices, creating good buying opportunities for those looking to secure quality hay and straw ahead of spring and summer.

Back in a fortnight..

Shane Ruyg

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

Here are the latest prices.

• Vetch is in the bracket of $250 to $465 a tonne (New Season)
•  Cereal Hay ranges from $150 to $400 a tonne (New Season)
•  Lucerne Hay ranges from $285 to $655 a tonne.
•  Clover & Rye Hay ranges from $230-$450 a tonne.
•  New Season Straw ranges (at the moment) is from $80-$150 a tonne.

We go around the grounds to hear from our Farm Tender Sales team:

Paul Grayling - Mallee, Vic-based

The last fortnight has seen a slow rise in sales, with some straw getting looked at, That being said the majority of enquiries are coming on listings that have adjusted there price as we are staring down another high yielding Hay and Grain season sellers are getting nervous seeing sheds still full. Freight is another issue with the stating of bale weights on each listing is imperative for buyers to crunch there numbers on delivery.

Mike Pickard - On the Road

Interest in hay is pretty much not there at the moment. Just speaking to a couple of farmers in VIC because the crops got away too quickly early they worried that the country underneath the crop is not drying out fast enough laying it down on wet country is probably not gonna help.
Talking to a few on the Liverpool plain the season is holding up okay with feed available but plenty of frosts are putting a dent in the feed value and the added pressure of no follow-up. Rain will be interesting to see where the crops end up. Further north, they weren’t as lucky getting the rain and there’s no feed of value there with some feeding the stock that’s left.

Jim Oehms - Northern Country, Vic-based

Well the hay job is still very slow at this stage but over the last few days it has started to pick up again and can only see hay and straw getting busier. Prices are still pretty much decent at this stage as well. With current fuel prices as they are and only going to inflate over the coming weeks, Proximity and distance will certainly be a factor. We are seeing that most of the hay is coming out of VIC and heading to the northern states. There is positivity out there with current season crops looking pretty good and most hoping the frost will stay away. There are still a few that are having trouble getting into have there hay picked up as too wet but that hopefully should ease over next week or two. Remember that if you are selling hay to have a feed test done and if buying hay to inspect first.

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

Jim Oehms -- 0481 102 288 or jimo@farmtender.com.au

Or call us on 1300 Farming (1300 327 646)