Farm Tender

Hay Report - Wish list for the new season

Wish list for the new season

 

For the fortnight up to the 28th of July, 2021.

 

As far as the season goes, all indicators point to a pretty good second half of the year. So it might be time to pull out the wish list when it comes to the new Hay season, which is just around the corner.

We believe that the quality of Hay in stock as a collective is below the normal average. As you would know, the 2020 season vintage was not good. So the order for the new season is quality.

Demand is still low and looks like being so for some time now, so to balance the equilibrium, the Hay we need to bale up has to be good.

We need to have the condition right at the right time for all this to happen.

The incentive to bale up lesser quality Hay will not be there. If it's not quality, it won't be going into a bale.

So the wish list is for things to go smoothly when the new season floats around.

It's now wet in many spots, cold also, so grass growth is minimal. One Sheep Farmer in the Wimmera is so glad he has a functional confinement feeding system in place. He said, "if our Ewes were grazing the bare paddocks, they would be losing condition whilst going round in circles looking for a feed. Under confinement feeding, the Sheep are doing better, and we are letting the feed get away in the paddocks, so it's a win/win for us".

Crop's in the areas where the break was late are waiting for some sunshine. That might not happen for a few weeks, but they will soon catch up.

WA is having a cracker season. A few guys I spoke to last week say they have never seen it this good at this time of year. The rain gods just keep giving.

It's interesting to watch the spike in price for Fertiliser and Urea. MAP hit $1000 a tonne in spots, and Urea is currently trading at around $850 a tonne at the time of writing. There will be some resistance about how much to put on at those prices.

Hay gear sales have been surprisingly strong in the last 3 or 4 weeks as Farmers take a bit more of a longer-term view.

 

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

The price for Hay is very stable and has been for some time.

If anything, the best quality Vetch Hay lifted in value by $5 in the last fortnight. The highest price recorded was $215 a tonne. This parcel had a test of 20 for P, 9 for ME and the NDF was 44. Some good Vetch and Clover Hay made $220 a tonne.

Some Lucerne Hay sold for $250 a tonne.

Good quality Cereal Hay is tough to find, and volume users are with me on the wish list outlined above. Prices remained steady for the fortnight, with the top price recorded being $155 a tonne for Oaten Hay.

We sold some good shedded Straw for $70 a tonne

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 - The last fortnight has seen a slight lift in demand mainly due to wet paddocks and not wanting to pug things up. Again, Vetch seems to be the best bang for your buck as far as Production Hay goes. We have also seen a slight lift on the Cereal job. Pricing has been steady for a fair while now, with the scales still tipped the buyer's way. New-season Hay will push that down further, especially if the quality is an improvement on 2020 Hay. 

 

Shane Ruyg - Qld based

Shane said - Another steady fortnight of sales with things slowing down a bit due to the rainfall and ability to get in and source the Hay. Protein Hay (Vetch) and good Cereal Hay being the main sales, and with the weather snapping cold and wet, I can see the demand lifting. I have noticed a few exporters coming back into the market due to the uncertainty of what Hay will be out there this year due to the planting levels being low compared to other years.

 

Mike Pickard - Darling Downs, Qld based

Mike said - Continuing on with my road trip through New South Wales, where I headed west across the Riverina to Deniliquin and then on to Balranald and now Wentworth, before heading up to Menindee and Broken Hill. Crops are all in, and it's pretty wet in places. There is still plenty of Hay Stacked in sheds and in paddocks. Talk amongst a few producers I have spoken to are saying they may reduce the amount of Hay they cut this year and let more go to grain. 

 

Jackie Elliott - South West, Vic based

Jackie said - It is the age-old question, what is Hay doing? Without sounding like a broken record, Hay enquires have been quiet, with small loads being collected here and there. I have had a couple of conversations with sellers that are sitting on Hay, waiting for an increase in interest. 

 

Talk soon, EOM

 

Dwain Duxson - Farm Tender & DelayPay

 

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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