Hay Report: Softening Demand

With the rain continuing across many regions and warmer than normal winter conditions, we're seeing a slower than usual hay market. Buyers are generally purchasing only what they require, with very little demand for large parcels. The recent rainfall has produced green pick in paddocks that rarely see this level of growth at this time of year, reducing the immediate need for supplementary feed.

As the sales team has mentioned, this is expected to change. Once soil temperatures drop and winter conditions return to normal, livestock producers will again require protein hay and roughage to carry stock through the remainder of winter. When that happens, we expect hay movement to increase.

One noticeable trend is that many sellers are keen to clear older season stock before the new season arrives. As a result, we're seeing prices adjusted to encourage sales and ensure hay is moved rather than held over into next season. Buyers looking for value should keep an eye on these opportunities.

On the production side, reports suggest new season crops are progressing well across many regions. While there is still plenty of growing season ahead, the outlook is positive and, with favourable conditions continuing, many are optimistic about the potential for a bumper harvest.

Back in a fortnight..

Shane Ruyg

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

Here are the latest prices.

• Vetch is in the bracket of $250 to $455 a tonne (New Season)
•  Cereal Hay ranges from $150 to $410 a tonne (New Season)
•  Lucerne Hay ranges from $285 to $655 a tonne.
•  Clover & Rye Hay ranges from $230-$450 a tonne.
•  New Season Straw ranges (at the moment) is from $80-$150 a tonne.

We go around the grounds to hear from our Farm Tender Sales team:

Paul Grayling - Mallee, Vic-based

The last fortnight has seen the hay Job come to a bit of a halt with some relief coming with rains across the majority of the eastern sea board table and with un seasonably warm winter weather, growers are taking a respite from purchasing hay with only a few out sourcing fodder. Expectations are still there that we will see an uptake in fodder sales as soils cool off and the growth stops. That along with the fact that some areas are closer to being too wet than too dry we should start to see requirements lift. Production Hay ie: Vetch and high protein and energy hay should be the first to go. Shedded and feedtested parcels along with bale weights seem to be getting more attention than those that are missing this vital information.

Mike Pickard - On the Road

Enquiry for hay in the southern states has dropped dramatically with a few sellers reducing prices to try and get it moving. Have enquiry for Barley and/or wheat straw 480 + kg to go to Queensland. Pricing needs to reflect as it has to go a long way. Buyer would prefer in New South Wales but will consider Victoria. The occasional spot load is selling and buyers are only buying on individual load basis when it is required. Could be a bit more stock heading to the market after the end of the financial year.

Jim Oehms - Northern Country, Vic-based

With the recent rains that have covered a lot of the eastern and Southern Australia, the demand for hay has reduced a fair bit. A lot are very happy with the rains and feed on the ground but they do know that this will not be a long term fix and that the hay job will most likely start to pick up again in around 3- 4 weeks time. Straw is also a pretty popular source at this time as well. There are a few i have been talking with and they are going to hold onto their hay for now and see what comes in next month or two. Spot loads are still moving with a load or two here and there, but nothing like up to about 6 weeks ago. People are still looking for their hay/straw as close as possible too. Prices are still relatively reasonable. Remember, if you are looking at selling your hay to have a feed test done and if buying, to inspect first.

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 call us on 1300 Farming (1300 327 646)