The first sign of a shift in demand...
For the fortnight up to the 9th of March 2021.
Well, well, there is movement at the station. For the first time in over 12 months, we are seeing a fortnight where demand has picked up. But nearly all the buying demand is coming for Vetch Hay and at rates of between $135-$170 a tonne, which is not that enticing for some sellers. However, there are sellers out there prepared to meet the market.
Things are starting to dry out in spots, and reports are saying that La Nina is weakening. One ex-Dairy Farmer tells me things have dried off in the Gippsland area, they have had a ripping season, but it's starting to turn.
Mike reports below that it's patchy in Northern NSW and Southern Queensland, with 50% of Queensland still drought declared.
Sellers willing to meet the market has encouraged buyers to put their toe in the water at least. The International Dairy index surged last week, up 15% to reach a seven-year high. This is encouraging for Dairy Farmers. We are seeing a bit of buyer interest from a couple of Dairy processing Companies on behalf of their Farmer customers.
Beef Farmers aren't going to think twice if they have to buy a B Double load or 2 to finish off Stock destined for the selling pen.
And autumn is here, the weather starts to cool down, and Farmers start planning for the winter ahead.
What's happened to Hay prices over the last fortnight?
As mentioned above, the sales of Vetch Hay are happening in the $135-$170 a tonne range.
Cereal Hay is not in the same demand ball park as Vetch Hay, with not many sales being made. Any sales in the last fortnight have been at the $100 a tonne mark and upwards.
Straw sales are dead.
A couple of Lucerne Hay lots sold for $220 a tonne.
We go around the grounds to see what our Farm Tender Salespeople have to say:
Paul Grayling - Mallee, Vic based
Paul said - We are seeing some interest in Protein Hay with Vetch again leading the market. I think a combination of cheap parcels and the all too familiar dry spells have brought this on. I have also started hearing some talks on Cereal and even Straw. Without anyone banging the door down, I think interest should only pick up from here. Pricing needs to be on point, along with photos and Feed Tests.
Shane Ruyg - Queensland based
Shane said - What a difference between the last Hay report and now. With little enquiry, to lots in the space of a couple of weeks. Buyers are looking for the cheaper type Vetch Hay ($135-$155) that has tested ok in the P and ME and are taking a position on it and storing it away for the winter months. Some Cereal has moved as well, but Straw is still very slow.
Mike Pickard - Darling Downs, Qld based
Mike said - Some areas of Southern Queensland are still missing out on storms and rain; although rain that fell before Christmas sparked up the feed, however, it is now slipping with no follow-up rain. Some Sorghum Crops are stressed, 50% of Queensland is still drought declared. Small spot loads are selling; it's mainly hand to mouth as people are only buying when they have to at this stage. I think demand will pick up as it gets cooler.
Jackie Elliott - South West, Vic based
Jackie said - With a new website in place, we are looking forward to offering a better user search functionality when sourcing fodder requirements, this might be a week or two away before it working fully. In the meantime, if you require assistance searching for fodder, please give us a call. Things are starting to dry off slightly in the South West of Victoria, and we are seeing some demand come from Feedlots at the reduced pricing.
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]
Murray Jones (WA only) - 0474 808 160 or [email protected]
Or 1300 Farming (1300 327 646)
Need to buy something? Try DelayPay
Payment terms for buyers and a spendable credit limit in 24 hours, go to www.delaypay.com.au. If you are keen to know more ring Kelsey 0409 117 730 or Dwain 0427 011 900
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