Farm Tender

The Farm Tender Hay Report – Small pick up in demand as prices ease back

Small pick up in demand as prices ease back

For the fortnight up to the 24th of March 2020.

Well, haven't things changed in a fortnight, not necessarily on the Hay front, in fact, that has changed little, other than a slight pick up in demand on the back of some price easing.

Out of all that is going on, one very big vibe we are getting is that Ag is in good shape going forward, as good or better than any other major industry. We have been talking to some people in Finance and also Insurance and they are all saying Ag is very well placed. But in saying that, we mustn't get complacent and make sure we all keep our heads above water.

It was right near the end of January when things came to an all griding halt for Hay sales. Just looking at the spreadsheets and we are just starting to see a slight rise in activity. We are getting many reports that things are starting to dry out somewhat and to keep things going rain is needed. But it's not panic stations yet and wxmaps (14-day precipitation forecast) is saying we "might" get lucky before Easter and one hopes so.

Straw is still in abundance. As many of the Croppers enter the Seeding/Sowing window they would prefer the stacks out of the paddock, but that won't happen anytime soon.

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

Sales of Cereal Hay traded between $220/mt and $240/mt

Vetch Hay traded anywhere from $300/mt to $355/mt in the last two weeks

The Straw we did sell was around $100/mt

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

Mike Pickard - Southern Queensland based
Mike said - The season is drying up quickly with warm to hot conditions across Southern Queensland. The long-term forecast says we are heading back towards a dryer three months. Currently, we have very little inquiry with the occasional sale. The Hay that has been selling is the higher protein or ME stuff.

Shane Ruyg - Queensland based
Shane said - The Hay job has been reasonably quiet again but am seeing a spike in enquires which suggests we may see more being sold in the coming weeks. The outlook in Central New South Wales and Queensland is trending drier, and we are hearing that the paddocks are hardening up quickly. Good to see they are letting Agricultural items across borders.

Paul Grayling - Mallee Vic based
Paul said - We have seen a marginal lift in the market as far as sales go, pricing has continued to head South but not on everything. Production Hay is still at the forefront of enquiries, rain is needed in the majority of areas as things are drying. With winter approaching and stock prices remaining reasonably strong, demand should only increase from here on in. All that being said, we are currently at one of the biggest crossroads we have experienced in a very long time. With lots of uncertainty out there, we must stay positive and rise to the challenge of being perhaps the last (and most important) sector to remain active. Stay healthy and all the best.

Jackie Elliott - South West Vic based
Jackie said - Jackie just started this week so she will contribute to the next edition.

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 - Number coming soon
Or 1300 Farming (1300 327 646)

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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