Hay Report - It's been a buyers market, but has it.....

For the fortnight up to the 31st of April 2023.

By Dwain Duxson

The Hay landscape has changed in the last fortnight. Demand and sales have both lifted, and I would safely say that it's the most active it's been since Hay sales fell off the cliff back in March 2020 (when the drought broke). The demand is for all types of Hay, Straw and even Silage. Buyers are searching for the best quality possible in a low-quality market. Basically, right now, it's what the buyer can get their hands on.

A positive on the horizon is that many Farmers have sown Crops with Hay making in mind. It's been 2 seasons since we have injected any decent Hay into the market, so let's hope this is the year to replenish stocks and give the seller the ability to deliver some decent quality to buyers.

Most would say that it's been a buyer's market for the last 3 years, but I would argue against that. Yes, prices have been lower than the 10-year average, but the quality they have been buying has been well below the average. Higher NDFs (Neutral Detergent Fibre percentage of Dry Matter) means that the Hay we are currently buying is nowhere as efficient as lower NDF Hay. I think buyers would be happy to pay more for higher quality Hay because the performance gains out the other end are better. So it's better value for money.

I was talking to a Hay Trader from up Northern NSW last week, and he has got this feeling there could be a bit of rush on in a fortnight's time when the Cattle guys start realising they might need some pretty soon. This current market rewards the people that plan early, and there would be nothing worse than realising you need a couple of hundred tonne and you can't get it.

The price dive for both Sheep and Cattle is a concern and has meant that the Livestock guys have probably got more heads on than they normally would at this time of year. Just looking at current MLA pricing, and every indicator for Sheep and Cattle is red ink for the 4-week and 1-year comparison. Take a look here.

The confidence amongst the Cattle and Sheep guys is shot, and it will be interesting to see how it affects the Bull and Ram sales this spring

This year's Australia Fodder Industry Association Conference and Fodder Festival are on the 15th, 16th and 17th of August in Bendigo. Last week the website said Echuca....

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

Even though demand has lifted, prices haven't altered too much. Each time a load goes out the gate, the quality of the Hay left gets lesser each time.

We sold a 1500-tonne parcel of 1st cut Lucerne for $255 a tonne to various buyers.

Straw inquiries and sales are picking up. Most sales are sub $100 at this stage, but we should have some very good quality (tested) Straw come onto the market soon. 

Some Sorghum Hay made $205 a tonne

We sold some good quality Vetch Hay for $305 a tonne. 

One small parcel of top-quality Lucerne and Clover Hay made $355 a tonne.

Silage prices range from $80 to $100 a Bale.

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

Paul Grayling - Mallee, Vic based

Paul said - The last Fortnight has seen another shift in the Hay Job, With Producers looking for supply to carry them over the winter period. We are seeing Lucerne Hay go along with Pasture type Hay for Dry Cows. Also, Sheep Feed has given the Cereal Hay a bit of a nudge along. Straw has been enquired about but isn't moving as quickly as the fore-mentioned lines. We are also seeing distance, freight pricing, and availability being key factors in people's decisions.  

Shane Ruyg - Qld based

Shane said - The Hay job has definitely lifted a few notches in the past couple of weeks with the demand higher than it has been for some time. Some big parcels of Lucerne, along with some Vetch, has been the main type of protein Hay moving, and buyers are also after some good Cereal Hay if they can find it. Straw has also started to move, and if it remains cold and dry, I can only see the demand become greater as we move into Winter.

Mike Pickard - Travelling around 

Mike said - Inquiry for Hay has picked up with sales of Lucerne Silage, Pasture Hay as an extra Feed source over the winter months for Livestock. Straw inquiries are picking up also as Lotfeeders are looking to add to Feed mixes. It has been quite dry in Central West New South Wales, where some are reporting they haven't planted any Crops as yet. Eyes will be on a weather front developing early next week.

Jim Oehms - Northern Country, Vic based

Jim said - Been talking to a few, and most are saying that the Hay job has picked up and is only going to get busier due to the weather. All types, Vetch, Oaten, Wheaten, and even Straw, have picked up, mainly in Vic and NSW.

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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