The Farm Tender Hay Report – Rule of thumb for pricing of Canola Hay

By: "Farm Tender" News
Water & Irrigation News
Nov 19, 2018
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Rule of thumb for pricing of Canola Hay

For the fortnight up to the 20th of November 2018 - Volume 20.

The rule of thumb for pricing Canola Hay Ex-Farm at the moment is as follows. If the protein is 20% then it's valued at $300/mt ex Farm, and for every 1% drop, the price comes back $10/mt. So if the protein is 12% then the price is $220/mt + GST. This is the case at the moment, and like everything, things can change.

Demand for Hay stayed about the same as the previous fortnight, the people that are buying are sifting through the tests looking for the best value Hay they can get. For the sellers, the prices are still very good and well above the 5-year average.

Grain Barley seems to be in the spotlight right now with the Chinese accusing us of dumping. There are also some trying to talk the price of Barley down. One of our wise advisers is tipping, whatever the Grain market does the Hay market will follow and vica versa. They are also tipping that any drop in either market, if it happens, will only be short-lived. Opinions I know, but we all have to have one.

Looking at the spreadsheets, we have seen that Vetch Hay has been making $325-$400/mt, we are finding a bit of old season straw in some of the Vetch which means it must be discounted. Cereal Hay anywhere from $230-$280/mt, with a select shedded parcel of Wheaten Hay for Winter delivery making $320. Any Cereal Hay with an ME above 10 will be sought after.

We have sold the odd parcel of Cereal Straw in the range of $130-$150 ex Mallee. Some good Clover and Rye Hay made $305/mt ex West Wimmera. As for Canola Hay, use the rule of thumb above. Lucerne Hay is probably tracking the Vetch Hay market right now.

All of the above is full of variables but gives you guide as to what the good stuff is worth and work backwards from there.

Once again we emphasise the importance of good photos, accurate descriptions and a Hay test.

Also, we launched DelayPay a few weeks ago and have had a huge response. It's a buy now, pay later product that can be used to purchase any Farm related products. For more info Call Dwain Duxson on 0427 011 900 Kelsey Miller 0409 117 730

The next report will be in two weeks time.

For more information on selling or buying Hay contact the following:

John Drum – 0408 504 561 or johnd@farmtender.com.au

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)

www.farmtender.com.au

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