List it if you want to shift it
For the fortnight up to the 14th of July, 2021.
It's been a fortnight of treading water with the Hay job. No gains, but reasonable activity that resembled the previous 6 to 8 weeks.
It's a case of list it if you want to shift it. Why? Because the opportunities are random, that's how we see it anyway.
Apart from some small patches, the Hay growing areas of SA and Vic have caught up after a late start. All of a sudden, Hay Crops have potential. But more rain is needed as we don't want it like last year where things were nearly doomed in late July when it got dry.
There might be some second thoughts when it comes to the usual practice of feeding Crops to bulk them up with Urea prices the way they are. Prices have been rising sharply for a few weeks now, with current market prices at around $840 a tonne. Some analysts suggest the price could reach $1000 a tonne. Wowee, I don't think I have ever heard of Urea price being at that level.
We haven't seen Hay prices this stable for many seasons, and that doesn't look like changing anytime soon. It's a dull market.
It's just one of those perfect storms where the seasons post-drought (mainly NSW) have been huge, and there are just not enough mouths to accommodate the green stuff that has been growing.
However, the late start in many areas has provided a window that has given sellers a reason to be optimistic. This has led to some sales, and with a few frosts around and Winter at its peak, we might see the limited demand continue. But don't hold your breath.
Many are thinking about the new Hay season, which is not far away. The decisions people make will be dependant on what is happening at the time of cutting and baling. If it looks like the quality will be there, then Producers will bank some Hay for Ron (later on). If the season is in strong shape come Hay cutting time, then most of these Crops will be taken through to Grain. Many will focus on just Grain alone.
What's happened to Hay prices over the last fortnight?
Vetch Hay prices hasn't shifted in the last fortnight. The better quality stuff is still making just North of $200 a tonne.
Prices for Cereal Hay ranged from $100-$150 a tonne.
Straw had limited demand in the last fortnight and is selling at around $60 a tonne.
All prices 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 - The last fortnight hasn't seen a lot of change for mine with the Hay Job. Sellers seem to be reasonably keen to clear the sheds to make room for the new season Hay, and pricing are reflective of this. Scattered loads of Protein Hay seem to be shifting, but again not setting any records from a price point of view.
Shane Ruyg - Qld based
Shane said - We are starting to see some regular buyers come back into the market with a solid month of sales with mainly Vetch Hay again and small amount of Cereal and Straw. Pricing hasn't moved that much, but buyers are still after quality and good feed tested Hay. Interesting times with the weather coming in again down South and hoping that the North Mallee/Wimmera can get a decent drink as we are wanting some good Hay grown this season to replenish the stocks with quality being the main issue.
Mike Pickard - Darling Downs, Qld based
Mike said - I have been doing a road trip from the Darling Downs down through Dirranbandi, Walgett to Nyngan, then down through Condobolin, West Wyalong to Corowa. From the Darling Downs to the Victorian border, it looks a million dollars with new season Crops all in and up. A far cry from where it was 18 months ago. There are Haystacks everywhere, Sheep and Cattle are fat, and the Crops are good. Small parcels of Hay have been selling to Dairy Farms and spot loads to individual Farmers who are buying as and when required. Good testing Vetch and Cereal Hay has been selling okay. One exporter is looking for Oaten Hay with WSC above 18.5.
Jackie Elliott - South West, Vic based
Jackie said - Over the past fortnight Hay enquiries have slowed down in my area. I mentioned in the last Hay report that in South West Victoria, we had limited frosts, well over the weekend, we had two extreme frosts which will certainly slow down the feed growth. Most Sheep producers are in the full swing of lambing across the district. Roughage will be getting fed to dry Cows to get them through until calving heading into Spring.
Talk soon, EOM
For more information on selling or buying Hay contact the following:
Paul Grayling – 0447 069 082 or [email protected]
Shane Ruyg – 0447 922 604 or [email protected]
Mike Pickard – 0429 677 636 or [email protected]
Jackie Elliott - 0400 808 550 or [email protected]
Or 1300 Farming (1300 327 646)
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