For the fortnight up to the 11th of August, 2021.
I have been out of the loop for a week doing a tour around Tassie. Ripper spot with plenty to see.
It's green enough in most places I have been to, so very little movement of Hay over here. Although in saying that, some of the Dairy and Sheep areas looked as though they might have had a late start to proceedings like Victoria and SA.
On the mainland, the season is cracking along in most places, and if we needed plenty of Hay, the Crops would deliver in spades. However, demand levels and prices are not that enticing for Farmers to turn Crops into Hay bales. They will be much better Harvesting the Grain.
Some of the photos of the Crops I am seeing in WA are phenomenal. "Once in a Farming lifetime" one Farmer put it.
As mentioned in the last report, the focus for the new Hay season should be on quality. There is s distinct lack of quality Hay in the system.
Hay Gear has been selling well over the last couple of months, with Tedder Rakes becoming popular. We have sold our fair share of Balers and Mower Conditioners, but it's slightly behind 2020, where demand for Hay gear was extreme.
We are also seeing some Growers head back to doing more small squares. It's happening for those closer to the capital cities and the larger rural centres. The demand from the lifestyle market is pushing it. There is more margin in this particular market. Also, the equipment to handle small squares has got better over the years. I am sure we all have a story or two about carting and stacking small squares (or idiot bricks as they are commonly called).
What's happened to Hay prices over the last fortnight?
It's a bit of a broken record but not much changed as far as pricing goes in the last fortnight for the run of the mill stuff.
We sold a good parcel of 2019 Vetch Hay that measured 24.5 for P, 12.2 for ME and 29.7 for NDF for $250 a tonne. This has been a standout price for this season, with most Vetch Hay making $200 or less.
Some Lucerne Hay sold for $250 a tonne.
The guys report below that there has been an increase in sales of Cereal Hay. We sold a 400-tonne parcel of good quality Oaten Hay into an Exporter for $180 a tonne. Again this is a bit of a once-off.
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 - This past fortnight has seen a slight lift in demand with a couple of semi-large parcels of Cereal Hay being sold. Overall it still seems pretty quiet. Production Hay seems to be the most popular choice but mainly just spot loads to carry through to the warmer weather. Straw is still quiet. There are a couple of buyers circling, but they have a very niche market on the other side, so they are very picky with what they take..
Shane Ruyg - Qld based
Shane said - A good couple of weeks on the Hay job with Protein Hay and some good-sized parcels of Oaten Hay going into export. Very wet in areas and hearing that we should see some more Hay moving as it's slowing down the paddock feed that was there earlier. Prices are status quo from the last fortnight..
Mike Pickard - Darling Downs, Qld based
Mike said - I have been staying out at Broken Hill and Wilcannia over the last couple of weeks, and there is an awful lot of Hay moving north out of South Australia.
Just speaking to a large buyer, he is having a real issue about Bale weights, especially on long-distance hauls. He would like to see more accuracy in the weight part in the description. He sites a case last week where it was advertised at 650 kg/bale. When he loaded his Truck turned out it was only 580 kg, so instead of getting 39 tonnes on the Truck, he got 35 tonnes. By the time he gets it back to Queensland, it costs him a lot more. Moving forward, if he is going to do any large contracts, he may be putting a clause in there if the weights aren't what is described, there may be some form of dockage. He has asked everyone for this Hay season to be more accurate with the Bale weights. Oaten Hay has been selling around $135 a tonne
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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