Hay Report - Northern Hay sellers get an advantage

For the fortnight up to the 25th of October 2023.

By Dwain Duxson

The rain a couple of weeks ago was a minor hiccup for most in what has been a wonderful Hay season to date. 

Those who are first to get Hay in the Bale and get their Feed tests done have had an advantage in that they have been able to sell into a hungry market. Also, those closest to the Queensland Border have had an advantage because of the lower freight rates of Hay heading North. So, it has been a double advantage for many in the Central West or the Riverina of NSW. 

But as we see these supplies start to dwindle, that advantage will start moving South into Victoria and South Australia. But whether buyers factor in the extra freight when pricing the more Southern Hay remains to be seen.

So, if you are in the more Southern states, you don't have to panic as your turn will come, as we are seeing more demand than we thought. It's still better to take your time and get your Hay right, as the competition will be for quality.

As we write, the cooler conditions are slowing down the curing process.

On the Export Hay front, Gilmac set the bar with prices ranging from $240 to $330 a tonne. Other Exporters have followed suit with similar prices, and the scramble is now on. I wonder if they will lift prices any higher to obtain volumes. At the time of writing, in the Mid-North of SA, alot of the Oaten Hay is in the Bale whilst, in Victoria, they are just starting to Bale. 

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

New season Vetch Hay is holding around the $300 a tonne mark.

There are no large volumes of new season Cereal Hay just yet, but we are seeing stuff move at between $250 to $275 per tonne. The Export prices will keep the pressure on domestic prices.

Old season Vetch is selling for $150 to $200 a tonne.

Good quality Lucerne Hay is selling for between $350 and $400 a tonne. 

Old season Pasture Hay is selling for around $130 to $150 a tonne.

There is a bit of demand for Straw at between $80 to $100 a tonne ex, Farm Victoria and South Australia, and prices go up the more North you are. 

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

Paul Grayling - Mallee, Vic based

Paul said - We are starting to see some movement on the new season Vetch Job, and we are finally starting to see some A1 Feed tests. If you have a new season Vetch Hay, get it tested and listed. There haven't been a lot of Cereals hit the market as yet, but we have had some buyers asking the question about it. 

Shane Ruyg - Qld based

Shane said - A very busy fortnight with a lot more activity and new season Hay coming on the market. Vetch Hay in large lots has been sold with Feed Tests back to 20/10 and low NDFs, which has not been seen for 3 years or so. Exporters are on the March to secure any Oaten Hay that tests well and also some going into Feedlots and other areas. Enquiry on Straw has also lifted with conditions in NSW/QLD continuing to remain dry. Pricing is holding around $300 + per mt for Vetch and $250-$275 + per mt for Cereal Hay. Straw is trading at $80-$100 + per mt ex-farm VIC, and the further it goes North then it becomes dearer.

Mike Pickard - On the road

Mike said - Some good sales of Vetch Hay in the Riverina and the Wimmera areas of Victoria. All out of the paddock and testing extremely well, much better than the last two or three years. Some good sales of Barley Straw in Northern New South Wales and Queensland are going to Farmers in need of some Feed supplementation. Spot loads of leftover old season Cereal Hay is still happening locally across Victoria and the Riverina of New South Wales.

Jim Oehms - Northern Country, Vic based

Jim said - Well, the season has certainly started to ramp up as we have been getting a lot of calls re new season pricing of what is being cut and Baled now, including Lucerne, Vetch, Cereals and Oaten. I have been letting these all know to make sure to get Feed tests done as well. There are a few that are selling Hay off the ground and has not even been baled as yet. The only thing that has been slowing Hay sales has been the cost of transport. These costs, I'm told, have been from $7.50 per km and up to $9 per km for road trains. Hence, most up North are buying off the ground or looking for Hay close to them. There have been some very decent yields in Victoria, SA and the Riverina areas.

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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