The Farm Tender Hay Report – New season Hay price predictions not bright

By: "Farm Tender" News
Water & Irrigation News
Jul 14, 2020
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New season Hay price predictions not bright

For the fortnight up to the 15th of July, 2020.

Prices slipped in the last fortnight with all Cereal Hay selling under the $200/mt mark. This has been a Winter like no other as far as demand is concerned, it just hasn't got out of neutral.

Paul's comment below of new season Vetch Hay going as low as $200/mt and less isn't great news for Growers. If that's the case, then it will be a good time to buy some good quality protein Hay.

It's interesting to note that sales of Hay Equipment have been extreme. It's been by far the biggest lead up to a Hay season we have come across. That indicated to me that there is still going to be plenty of Hay made in the new season, especially if there is plenty of bulk around, which it looks like the case South of the Queensland border.

Mice are still a concern, any sort of visible damage is a deterrent to buyers.

The Lucerne Hay market is holding it's own and is the real bright light of the industry. The Horse industry is where the demand is coming from.

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

There were some discounted sales over the last fortnight with Cereal Hay dropping to under $200/mt

Lucerne Hay has been selling from $420/mt to $450/mt. Vetch Hay is still selling around $300/mt despite the predictions that new season stuff could be discounted dramatically.

Straw is back to the cost of production with selling prices as low as $50/mt.

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

Paul Grayling - Mallee Vic based

Paul said - Unfortunately there isn't a lot to report for the minute with buyers still hard to find. Prices have taken a haircut and we are staring down the barrel of new season Hay. I have heard some pretty sharp pricing being kicked around on new season Vetch Hay in the VIC Mallee of around $170-190 off the Baler. This should bring out some buyers.

Shane Ruyg - Queensland based

Shane said - With the winter rolling in you would think Hay and Straw would be flying out the door, but currently, it's quite the opposite! I have only sold 4 small parcels of Hay/Straw the last fortnight. Already we are hearing low pricing for Hay off the Baler and a lot of buyers are holding off grabbing too much until then. Let's hope for the seller's sake we start seeing more movement in the next few weeks.

Jackie Elliott - South West Vic based

Jackie said - With not much to report on again this fortnight, other than smaller parcels of Clover Hay sold in the South West Vic and Canola Hay sold to the NSW Southern Tablelands. There are parts of South West Vic that haven’t got too wet, we haven’t got to August yet, so this might turn around but we are not holding our breath.

Mike Pickard - Darling Downs based
Mike said - There has been some interest in Lucerne Hay especially around the border areas of Victoria/New South Wales. Also, some inquiry for Lucerne Hay in South Australia going into the Chaff and Compressed Bale market. Small spot loads of Straw selling in South Australia. 10 to 20 mm of rain across the Darling Downs has given a slight reprieve to the Grain Crops, but they not out of the woods yet.

Hannah Anderson - Central Vic based

This is my first Hay Report and going on what the other guys are saying it's very quiet and has been for some time. I do have a bit of buying enquiry from a couple of Feedlots. I should have more to report in the next fortnight.

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

Hannah Anderson - 0429 479 072 or hannaha@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