The Farm Tender Hay Report – Rain lifting spirits in drought-hit areas

By: "Farm Tender" News
Water & Irrigation News
Jan 28, 2020
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Rain lifting spirits in drought-hit areas

For the fortnight up to the 28th of January 2020.

This article is bought to you by CheckWeigh.

We still see robust demand for Hay even at the new higher pricing levels we are experiencing right now. Just looking at the spreadsheets, the enquiry coming in for Hay has gone to a new level again over the last month. We regularly receive between 100 and 200 enquiries through the website or app per day and the same amount via direct phone calls to the sales guys.

The bulk of the enquiry is still coming from the North.

On the supply side, we are starting to see parcels of shedded Hay hit the market from the Wimmera, Mallee (SA & Vic) and the SE of SA. Most of these Farmers experienced very handy Grain Harvests, so they are flush with selling options.

We are seeing plenty of Straw come onto the market, with parcel getting snapped up every day. In the overall picture, Straw isn't bad value from a buying perspective at the moment. It has become a much more popular form is Livestock feed over the last few years.

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With rain in Queensland, Northern Territory and New South Wales and the forecast of a good season ahead (fingers crossed), we need to be thinking about what the Hay market looks like if we return to a more average season.

With a long way to the next Hay season and with limited supplies around, we don't think the market will change too much even if it does rain. But come the new Hay season, and there is plenty of Hay made to the North, then demand for Southern Hay will drop off. A lot of water has to pass under the bridge in the interim.

In many cases over the last two years, we have seen the freight invoice nearly equal that of the Hay invoice. The subsidies have cushioned the blow, but we all know that hauling Hay these distances is unsustainable over a long period.

I want to make a call out to all involved in the Burrumbuttock Hay Runners run the other day, what a spectacular site of Trucks heading up the Highway in convoy to Armidale (NSW). Well done to each and everyone involved. We have also seen and heard many other smaller private groups doing the same thing, well done to you guys as well.

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

Cereal Hay prices are anywhere between $280/mt to $320/mt depending on the location and quality.

There has only been a handful of Canola Hay parcels traded in the last fortnight. Prices remain around the $300/mt mark.

Vetch Hay is sought after with only limited numbers of parcels on the market. Prices have firmed slightly in the last fortnight with top quality Vetch Hay demanding $400/mt ex Wimmera

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We sold a lot of Straw in the last fortnight at $150/mt, that was for good quality header Trail Barley Straw with bales weight of 550kg plus. Wheat Straw is trading $5-10/mt below the Barley Straw.

We are selling more and more lots of Rolls as each fortnight goes by, it's an ongoing trend that Rolls get more popular at this time of year.

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

Mike Pickard - Southern Queensland based
Mike said - There have been some good falls of rain throughout Queensland and Northern New South Wales, although still patchy in places, it has lifted some spirits of the people throughout these regions. It's still warm enough and it will generate some growth with inquiry on Seed for early grown Forage Crops has been strong. This has somewhat lessened the demand for Hay to a degree, but there are plenty still chasing. Some good parcels of Straw have been sold to Feedlots.

Paul Grayling - Mallee Vic based

Paul said - Generally we have seen Hay stocks is dry up over the last month. But we are now starting to see a few parcels coming on to the market; these parcels, however, attract a premium price. There is a lot of Straw being advertised with a realistic price tag currently. We are yet to hit February, traditionally the hottest month, then Autumn and followed by Winter, so a wide range of scenarios could play out this Hay season yet.

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Bonnie Kenner - North East Vic based

Bonnie said - We are seeing some new Hay listings starting to enter the market after a manic couple of weeks where we ended up with almost no Hay left on the site. Prices are varying depending on location. There is still some large quantities of straw available; there are a few parcels that have been feed tested and are testing up quite well. Straw prices have held fairly steady.

Shane Ruyg - Queensland based

Shane said - Shane on leave and unavailable for comment.

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

Bonnie Kenner - 0488 789 012 or bonniek@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 Dwain 0427 011 900 or Kelsey 0409 117 730

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