The scenario is this.
For the fortnight up to the 17th of November 2020.
Hay demand is still subdued with only the hand to mouth stuff heading out the gate.
Harvest is where the focus is, with any Hay being done in-between times or specifically by third party Contractors.
The scenario is this:
- There is still lot's of old season Hay and Straw on hand. Some shedded, most not.
- The new season Hay is going to be of lesser quality (than old season) in most instances.
- Regrowth in paddocks is causing issues.
- Feed tests are pointing to lesser quality Hay with ME's downs and NDF's on the rise due to the extended curing times.
- The big users of Staw are the Feedlots, and most of them are in Northern NSW and Qld, they will source that Straw locally which will affect the Southern Straw market.
- Mike says below that areas of Qld are light on for Feed and Farmers are back in the market. With Cattle price high, they will do what they have to do but will have the luxury of sourcing stock much closer than they did in previous years.
- The season has been tough on the Export job. Processors will have had to lower their expectations and will struggle to get the quality they require.
- WA is where the best quality Oaten Export Hay is, and there might be some opportunities for some reasonable quality in SA.
- The Dairy areas of Gippsland and South West Vic are experiencing a massive Feed year and an extended grazing season.
- The above areas will turn some of that grass into Silage or Hay and use when needed, which may be a year or two away.
- Many will do a second cut of Silage.
- It's a buyers market, totally.
- Lucerne Hay is the shining light with its ready-made Horse and Chaff market.
- There a probably a few other points I have missed.
Stockpiling the domestic Hay Crop is inevitable at this stage, sellers will just have to wait and bide their time.
The worry is that lesser quality Hay is going into the bale now. Can you imagine what it's going to be like in a year, or maybe even two years when it "might" be needed.
I know I do not sound real positive here, but that's the reality of the situations for sellers at least. It continues to be a buyers market.
What's happened to Hay prices over the last fortnight?
Old season Cereal Hay prices are in and around $150/mt.
Vetch Hay prices are sitting around the $200/mt mark.
There is a demand for Staw up and around the Qld/NSW Border.
We go around the grounds to see what our Farm Tender Sales people have to say:
Paul Grayling - Mallee Vic based
Paul said - We are speaking to a lot of growers re the pricing and getting Feed Tests (which are a must this year). There is unfortunately not a massive demand for Hay at the minute with quite a few lines having suffered weather damage. We can expect to see a fair bit of this Hay on the market which could push the price down a bit. But if you were lucky enough to avoid the weather, your Hay should sell at a premium (nothing like we have seen in the past few years). Enquiry for good quality Hay is there, but the sellers aren't beating down the door. After Harvest things will settle a touch and we will get a much clearer picture of "the Job"...
Shane Ruyg - Queensland based
Shane said - Shane was unavailable for comment as he was on leave at the time.
Mike Pickard - Darling Downs based
Mike said - Some areas of Western and North Western Qld are light on for Feed and are back in the market purchasing Feed for Stock. A reasonable parcel of Forage Sorghum Hay sold for $120/mt selling to the North Coast of New South Wales. With another parcel of Oaten Hay selling out of the paddock in Victoria to a local producer priced at $95 a tonne to clear his paddocks. There is a fair amount of Straw being baled in Northern New South Wales for local markets.
Jackie Elliott - South West Vic based
Jackie said - It's just been very quiet for Hay enquiry in my part of the world. It's a ripping Feed year, and the Spring continues to be a well-received long one. We are hearing that many Farmers might get two cuts of Silage this year.
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]
Or 1300 Farming (1300 327 646)
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