Farm Tender

The Farm Tender Hay Report – Hay Producers are weighing up their options

  • By: "Prime" Ag News
  • Water & Irrigation News
  • Aug 25, 2020
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Hay Producers are weighing up their options.

For the fortnight up to the 25th of August, 2020.

The season for most is going along pretty good, and confidence is high amongst the Cropping fraternity after some rain over the past fortnight. This is being reflected in Machinery sales over the last couple of weeks.

Green shoots have emerged, albeit few and far between, but we are seeing some interest in new season Hay. Shane sold a decent parcel of new season Vetch Hay, ex Mallee, to a Feedlotter in Southern Victoria with a slight discount-for-bulk price attached to it.

Farmers with paddocks destined for Hay production are giving it some real thought as to what they might do going forward. Some of the paddocks earmarked for Vetch Hay are now getting assigned to alternative options, like Green Manure or Vetch Seed production. The lack of market activity and the forecast for a wetter than normal Spring/Summer period has bought on this alternate thinking.

It's also the time of year when we see standing Crop-for-Hay listings emerge. How many take up this option will be of interest.

In the back of everyone's mind is that forecast for Spring, curing Hay in between rain events is not anyone's idea of fun. Severely weather damaged new season Hay will likely be graded below old season Hay. So in times of weak demand, it will be crucial to produce a quality product.

As we speak, we are hearing of Vetch Crops been felled in the Mallee regions of Victoria and South Australia. Those that haven't started in these areas aren't far away from striking a blow. The Vetch Crops I have seen around the traps have really bulked up in the last fortnight and we can expect more growth as the sun starts to create more heat.

So there is optimism out there for yield and we also have to take into consideration the frost window for Crops is still in play for some time yet. A heavy frost at the wrong time could change things.

On the Export Hay front, experts as tipping a quality over quantity Crop in Western Australia.

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

Cereal Hay price remained steady to range in the $150/mt through to $190/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 have seen some parcels sell in the last couple of weeks with a few buyers questioning the quality of new season's Hay as opposed to old season Hay, especially on Vetch. There is new season Vetch Hay on the ground, There is also some talk of people taking the Crop to Seed. With good healthy Crops for the vast majority, it will be interesting to see how things take shape and what ends up in a Bale and what doesn't.

Shane Ruyg - Queensland based
Shane said - With the new season upon us we are fielding more calls and enquires, with questions on pricing and possible markets. But with the continuation of the wet and cold weather, those markets are not there at present and it could be a tough year ahead. I am hearing Vetch is being mowed down in Northern VIC and other Crops are being sprayed out or will become Brown Manure. Let's hope that the rain does break for a period of time so the Hay can be baled. We don't want to end up with the headaches of wet, mouldy, and poor quality testing Hay.

Mike Pickard - Darling Downs based
Mike said - Not a lot to report at this stage. Some reasonable falls of rain have fallen across Central and Southern Queensland, which lends itself to a reasonable season. Inquiry for Hay is minimal, although a small parcel of Straw sold into Central Queensland from the Darling Downs. Reports from North-Western Queensland is that they are still very dry, the majority have destocked or put Stock on agistment in New South Wales. There is talk that the majority of Producers in the South may let Crops go through to Harvest.

Jackie Elliott - South West Vic based
Jackie said - There is a bit of Vetch on the move into Dairy areas, which is interesting to hear for this time of year. Could be a number of reasons, milk price, season or pasture availability. It has been a dryer than normal season for South West Vic and the South-East of SA. This has meant that Pasture growth is more prevalent than normal.

Hannah Anderson - Central Vic based
Hannah is now working as our Livestock Marketing Manager for our newly created Digital Livestock Exchange. For any Livestock info or listings contact Hannah on 0429 479 072 or hannaha@farmtender.com.au

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