Farm Tender

The Farm Tender Hay Report – Decisions need to be made...

  • By: "Prime" Ag News
  • Water & Irrigation News
  • Sep 08, 2020
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Decisions need to be made....

For the fortnight up to the 8th of September, 2020.

Another fortnight has passed quickly, and we all now know we are in the business end of the season. From now on it gets serious.

Some of the new season Hay has been dropped already, with some already in the bale. The Silage season is also on in earnest.

Most of the Victorian and South Australian Hay growing areas look pretty good, but most are now looking for rain to keep things going or finish things off. We have talked about the scenario of Farmers preferring to take their crops through to Grain this year, and we have also mentioned lately that some Farmers are looking at Green Manure or use Grazing as alternative options for paddocks earmarked as Hay. This is on the back of low current demand and low perceived demand going forward. Let's also not forget that the frost window is still in play and some Farmers in Western Victoria have had no less than 30 frosts for the year.

A Hay dealer in Queensland believes that Hay demand will pick up quite dramatically. This is on the back of Cattle prices being strong and Hay prices being low in comparison to the drought prices we saw late last year. Some see the opportunity to fill the Sheds again.

Victorian and South Australian growers believe that Northern buyers will source Hay "locally", from the North and we think this will be the case. But we also believe that they won't get everything they want locally, for example, good quality Vetch Hay will need to come from the South.

Dairy Farmers will also look to take advantage of the lower prices for Hay and stock up. Speaking to a couple of Dairy Farmers just recently and the favourable turnaround in their businesses has come on the back of lower Fodder costs. This has made a significant difference to their bottom lines.

Frost has decimated Pasture paddocks throughout parts of Victoria, South Australia and Southern NSW. Unless the rain pattern changes quickly, these grazing paddocks will have little chance of gaining any sort of bulk, so this could provide an outlet for Hay in the late Spring and Summer months.

As for the last fortnight, it has been quiet as far as selling old season Hay goes. Everyone is looking to see what the new season Hay looks like and there is no real urgency to buy so they can wait. Price can best be described as steady.

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

Cereal Hay price remained steady to range in the $150/mt through to $180/mt mark.

Most spot loads of Vetch Hay are selling for up to $250/mt.

Straw is in low demand still.

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 bit of enquiry on Standing Vetch Crops. There are a few listings for standing Cereals that are getting sniffed at but not a lot being committed to. As per the norm, no one is all that keen to throw a price out there as yet. I think it will be a quality-based price indicator type scenario. We will have to wait and see what the next few months bring.

Shane Ruyg - Queensland based
Shane said - New-season Vetch and Cereal Hay has hit the ground an even some Vetch has been baled up in Northern Victoria. But outside of that, there has been little interest, apart from odd load here an there. Pricing has been the talking point, with growers trying to work out whether to take it to Grain or Hay. At this stage, it's all hearsay until we start seeing it in a bale and feed tests are completed. This will then give us an idea of what the quality is going to be like this season.

Mike Pickard - Darling Downs based
Mike said - Temperatures are beginning to rise on the Darling Downs, moisture is at a premium to finish off current Crops, the majority will try and take Crops through to Harvest. Spot loads of Cereal Hay are still moving out into the Western areas of Queensland. There is a demand for Straw into Central Queensland Feedlots. One Hay buyer is saying they are getting enough inquiry to keep his Trucks running. There is interest in standing Crop on a shared basis in Victoria. Some smaller parcels of Cereal Hay is selling, subject to favourable DCAD test.

Jackie Elliott - South West Vic based
Jackie said - Much the same as other weeks, with not much to report other then there are some people talking about listing Hay in auctions to move old season hay. There is enquiry on standing Vetch Crops, with hopefully some good outcomes after inspections this week.

Catch you in a fortnight.

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

Get payment terms for buyers and payment security for sellers - 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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