Hay Report - Demand rises despite the Feed flush

For the fortnight up to the 24th of May 2022.

By Dwain Duxson

Not since February 2020 have we seen Hay dominate our sales spreadsheets. Well, last week it happened, Hay overtook Machinery for total sales.

So why sudden rush on Hay? It's like a trigger has gone off where collectively, buyers have thought, "it's time", knowing that the supply of quality Hay isn't around in numbers.

We had our staff catch up on the Gold Coast this weekend just gone, and for a change, my wife and I decided to drive. We left Central Victoria and headed North crossing the Murray over the new bridge at Echuca. We jumped on the Newell Highway at Jerilderie and got to about Narrandera, where conditions changed. Before Narrandera, things look good thanks to a kind Autumn. After Narrandera, things started to get wetter with lots of water lying in paddocks. This was the case all the way up to the Queensland border at Goondiwindi. But I did honestly think it would be wetter than it actually was. From Goondiwindi East to the Gold Coast, it was extremely wet.

There was plenty of feed in the paddocks and not enough stock to eat it. A great position for Graziers to be in coming into winter.

Dairy consultants are saying that Dairy Farmer, who make their own Hay and Silage, are stocked up for at least 18 months. Others not in that position are stocking up for the winter in the current market. 

One Exporter is offering $260 a tonne for Oaten Hay and only has 30 ha locked in so far.

Rising Grain prices will see Feedlotters think about tweaking their ration, and more Hay might be on the menu

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

Vetch Hay was in demand and peaked out at around $300 a tonne for the best quality stuff. This is a similar price to what buyers were paying a fortnight ago. However, we did see a small lift in the price for the lesser quality Vetch Hay. 

Good quality Oaten Hay made up to $220 a tonne, which was a rise of $15 from a fortnight ago. However, the lesser quality stuff starts at about $120 a tonne. 

Lucerne Hay was selling at around $300 a tonne.

Straw sales got to $70 a tonne with more activity than the previous fortnight.

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 - Is currently on leave 

Shane Ruyg - Qld based

Shane said - A big rise in inquiries and sales happened over the last fortnight as we see the cold weather come in and the issue of supply and quality being a factor. Good Protein Hay is in demand along with Cereal Hay, and some big buyers coming in to grab what they need to get them through to the new season's Hay is produced. It was mainly southern buyers going into Feedlots etc, and a few loads are going into NSW where the weather has caused havoc with production in the flooded areas.. 

Mike Pickard - Travelling around 

Mike said - Over the last fortnight, there has been quite a big run on Hay with inquiries across the eastern seaboard. There is also good inquiry on Straw.

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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