The Farm Tender Hay Report - Buyers dictate terms as demand picks up

Buyers dictate terms as demand picks up.

For the fortnight up to the 2nd of December 2020.

It was good to see a lift in demand for Hay in the last fortnight, especially for the better quality Vetch Hay and mainly into Dairies as Shane reported below. Shane also says how the test results for Vetch Hay are back quite a bit, NDF's are coming in over 50, and most of the ME's are low. 

The Weekly Times is saying that "Vetch Hay production has halved this season compared to the last few seasons". 

Mike said demand has lifted for Hay into Western Queensland and the Maranoa regions as the dryer, and now hotter conditions prevail. The current price of Cattle, combined with the lower cost of Hay and the ability to source it more local, is making it cost-effective to start feeding again. 

There is plenty of Silage in Gippsland where they are having a very deep season. 

Most of the first cut Lucerne Hay in the South East of SA is in the bale. 

As for WA, Wingara Ag reports that "Hay Crops around South West of WA have yielded from 4-9/mt. Reports indicate that top-quality export Hay is around $270-$290/mt on Farm and $200-$250/mt for downgraded Hay. Export Hay continues to dominate the market and gives the best price indication".

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

Old season Cereal Hay prices are in and around $150/mt. 

New-season Vetch Hay prices are dependant on quality. A range of $150/mt for lesser, up to $200/mt and a bit for the better stuff. 

Nearly all of the Straw that is moving is in the North. 

We go around the grounds to see what our Farm Tender Sales people have to say:

Paul Grayling - Mallee, Vic based

Paul said - We see a little bit more activity on Fodder front. With A1 Vetch Hay hard to come by, buyers are looking at other alternatives as far as production Hay goes. There is some "good value" Vetch parcels out there, and we are starting to see a few Clover and Rye options pop up as well. Also seeing the odd parcel of good quality Hay that has been lucky enough to avoid the rain. Reasonably priced feed tested and shedded lines seem to be the best selling. A constant we are hearing when talking to buyers is "it's our turn now!", in respect to the scales tipping in the buyers favour, this probably needs to be taken into account when listing this year's Hay.

Shane Ruyg - Queensland based

Shane said - Had a good run on selling Vetch Hay this week with the majority of the better testing product getting sold into some Dairies in Vic. The Vetch feed tests are well down on quality this year. NDF is above 50 mostly, and ME is quite low in some circumstances, obviously due to the weather issues. The poor testing Hay is down as low as $150/mt and the better stuff $200/mt and above. Very slow on Cereal Hay and Straw, with a number of the sellers saying they will leave it in the shed until demand rises. 

Mike Pickard - Darling Downs, Qld based

Mike said - Reports with the heat and the deteriorating weather conditions is that Hay demand is on the increase in Western Queensland and the Maranoa region. The biggest questions are being asked are. Is there a feed test, and what are the bale weights? The heavier the bales, the more economical it is freight. There has been a fair amount of Straw baled in Northern New South Wales and Queensland with most being shedded or placed under caps.

Jackie Elliott - South West ,Vic based

Jackie said - With consistent rain falling across the South West Vic, there will be less Hay locally. The Weekly Times says that "between Ararat and Portland contractors are reporting one of the lowest areas cut for Hay in many years". Hopefully, this means that producers in this area will be on the lookout for Hay suitable from further afield.

Talk soon

Dwain Duxson - Farm Tender & DelayPay

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

Jackie Elliott - 0400 808 550 or jackiee@farmtender.com.au

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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