Hay Report - Rain to stymie demand somewhat

For the fortnight up to the 22nd of November 2023.

By Dwain Duxson

The Hay season has wound up for many (but not everyone), and the outcome has been pretty favourable. There are robust volumes of good quality Hay this year, and that's important for ongoing sales. The high-quality offering will mean constant movement of Hay as buyers can buy with confidence, which should mean a constant flow will keep the money rolling in for sellers. 

The advent of Big Squares has allowed the Hay Market to go National; by that, I mean South to North but not West to East and vice versa. So when you are carting Hay long distances, which is readily acceptable now, for it to be at its most efficient, the quality needs to be high. 

Mike said below it has been a big Straw Season up North, and most Feedlots are catered for and have plenty of Straw around then going forward. 

The talk at the moment is the rain, and it has Southern NSW, Victorian and South Australian Grain and Hay Producers scrambling. For the guys in the North who have finished Harvest and for the Graziers, the rain is very welcome. More than welcome, I would suggest. Although it's been patchy, at the time of writing (3 pm on Wednesday the 22nd), there was still more to come. 

The rain in the North looks like it might change the demand aspects of the current Hay market. Already, we have indications from some that believe they won't need any Hay for a while. The Hay market is a fickle one. Apart from the Feedlots, Livestock Producers will normally only buy hand-to-mouth or, to be devilish, get an extra load just in case. 

The Export guys are having a good time buying Oaten Hay right now, and there is a bit of action with Silage in Southern Vic and South East of SA, but the normal yields aren't there.

Some of the Dairy areas are pretty dry, but the price is still good for Milk, so they are happy to buy Hay to keep production going. I'm told it's very drying in parts of Tassie.

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

New season Vetch Hay is around $300 a tonne, but we have seen price rise a little over the last fortnight, with some sales making $315 a tonne.

The Exporters are putting a floor in the Oaten Hay market and, to a lesser extent, the Cereal Hay market as a whole. Prices are getting up to $300 a tonne.

We are selling some nice new season Barley Staw ex Narromine for $125 a tonne. Most of it is heading North. 

Lucerne Hay is making $400 a tonne.

Clover Hay is probably not keeping up with Vetch Hay at this point, but the gap should close soon. We sold Clover Hay at $250 to $275 a tonne.

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 more new season good quality Hay hit the market, With parcels of Vetch Hay selling pretty well. Awnless Wheaten Hay is also sought after, with good quality Oaten Hay also being looked at. Finally, there is some thirsty country getting rain, which should help kick the Livestock job on a bit. Feed Tests, as per the norm, are a massive help in selling and pricing Hay. If you haven't had your Hay tested, take the time and get it done, as it could be the difference in selling the Hay or not. 

Shane Ruyg - Qld based

Shane said - A solid couple of weeks with Hay sales and listings and seeing more feed tests come in with quality right up there again this year in both Vetch and Cereal Hay. Exporters are definitely putting a dent in the Oaten Hay market. It looks like it's going to get pretty wet in areas of Central NSW and QLD, and this may slow the job down quite a bit. Some customers are already saying that they will need to buy Hay, which is great for them. It will be interesting to see how it also affects pricing down the track..

Mike Pickard - On the road

Mike said - Good rains through Central and Southern Queensland are starting to fill in the gaps where reports from 50 to 200 mm in places. Also, Good rains have fallen in the Tablelands of New South Wales, spreading out as far west as Walgett but still patchy. Talking to one Hay supplier in Queensland, all the Feedlots are full at the moment with Straw. There was a lot of Straw baled this year, so there is plenty to go around. There is some Hay and Straw available in Central New South Wales with plenty the further south you travel. Some good sales of silage and clover Hay in South West Victoria going to local dairies.

Jim Oehms - Northern Country, Vic based

Jim said - The Hay job is certainly in full swing. There has been a lot of enquiry on the pricing of new season Hay, and there has been a lot of new season Hay listed, which includes Vetch, Barley, Oaten and more. Straw is also being listed as well. I talked to a few in North East Vic, and their Canola has been going 1MT to the acre, which they are very happy about. As mentioned in the last report, transport is the killer these days, so people are looking at the closest option. I headed up to Elmore last week, and the line of trucks going to the Recievals was backed up big time. 

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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