Hay Report - Decision times loom

For the fortnight up to the 30th of August 2023.

By Dwain Duxson

It feels to me like a bit of a drier end to the season for the Hay making areas of SA, WA, Vic and Southern NSW. I hope not, but I think the reality might be setting in, for some at least.

A drier or cut-off Spring in this area could mean that it might be a big Hay year. I emphasise the word "might".

Dryer than normal Springs usually means that Cropping Farmers have to make more decisions about which way they head with their Crops. This is usually done on a paddock-by-paddock basis. I mean, we only ever see Canola Hay emerge when the Canola Crop looks like it might not finish. You never see Canola Hay in a good finishing season. This is an example of some of the decisions Farmers have to make, and no two paddocks or Crops are the same.

We are already seeing frosted Crops being cut for Hay in Central NSW.

However, it might be one thing to have the ability to produce it. It's going be another thing is the ability to sell it. Livestock Farmers with struggling Livestock prices are much less willing to invest in value-added components of running a Livestock business. I would argue that Hay can be a maintenance and also a value-added part of running Sheep or Cattle.

We have been crying out for a good Hay season for a few years now. Could this be the season where we get good curing conditions? But in saying that, it could be to the detriment of Grain yields. We also have to understand that many Farmers will get bugger all or nothing this year.

I was talking to a Farmer here at the Dowerin Field Days (WA) and he seems to think that the Crop could come in at around 12 million tonnes, that's compared to around 24 million in total last year. That's a hell of a drop, and as we speak, they are forecasting 32 degrees for parts of the Wheatbelt on Thursday.

Dry conditions are prevalent in the East of the country anywhere North of the Lachlan River in NSW. Anywhere South could be saved with a decent rain event. It's dry in Gippsland, also.

September will be a crucial month for many. Interesting times.

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

Demand is still strong, but supplies of decent quality is very limited, so people are reluctant to shift decent tonnages of Hay big distances because of the quality. This has meant that prices have not really shifted. Livestock prices might have a fair bit to do with that. 

Good quality Lucerne Hay sold for $450 a tonne. 

The best Vetch Hay traded in the last fortnight went for $270 a tonne.

Some Straw made up to $110 a tonne.

Good Cereal Hay is making anywhere from $190 to $240 a tonne. 

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

Paul Grayling - Mallee, Vic based

Paul said - Over the last fortnight, we have seen steady enquiry coming through on most types of Hay, with Vetch and Lucerne along with Clover and Rye being among the most popular. We are also hearing that New Season has already started to be cut along with some frosted Crops. Things are shaping up well regarding Bulk and, hopefully, quality as long as the tap stays off over the curing process this year should produce Quality Hay. With the Stock job the way it is, I personally don't see any record numbers being paid for top quality, but time will tell. 

Shane Ruyg - Qld based

Shane said - Another solid week on the Hay job with still lots of enquiries and sales going into NSW & QLD. Also, seeing a bit of Hay and Silage going into Gippsland, with areas in there apparently looking like drought-type conditions. Looking forward to New Season Hay coming onto the market with some hay down already and more to go down in the coming weeks. Fingers crossed the weather holds out until it's in a bale..

Mike Pickard - On the road

Mike said - Hay is still moving North. It appears to be going into Feedlots across the Darling Downs (Qld) and Northern New South Wales. The quality is not there, but they're making do by adjusting rations. With Livestock prices the way they are and the cost of freight, it is becoming a very costly exercise to continue to feed. There are a few buyers out there waiting to see what the new season Hay will bring in terms of quality and pricing. There needs to be a happy medium, otherwise it comes out of the realm of Farmers feeding Livestock. Another big cost is freight, with freight being quoted anywhere from $6.50 to $7.50 per kilometre.

Jim Oehms - Northern Country, Vic based

Jim said - The Hay job has certainly picked up another notch with a wide variety being queried on. Speaking to one Farmer in Northern NSW, he said if it wasn't for the Vic's with their Hay, there would be a lot of trouble with Cattle up that way. And as usual, transport is still an issue with diesel prices going up again.

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

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

Or 1300 Farming (1300 327 646)

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