Farm Tender

The Farm Tender Hay Report – Well haven't things changed in the last fortnight

Well haven't things changed in the last fortnight

For the fortnight up to the 14th of January 2020

This article is bought to you by Marson Industries Australia.

The headline says it all. The dynamics of the Hay scene has changed dramatically right across the country in such a short period of time.

Two unprecedented natural disasters running side by side (drought and the fires) has caused buyers into panic mode. Everyone is convinced that supplies of Hay are low, especially for the distance buyers seeking large squares bales only.

High demand and percieved low supply levels is what has pushed the market into an upward spiral. The fire situation is unforgiving in the fact that fodder is required immediately for stock if a property is burnt. Affected Farmers and the aid organisation have been very active in this space.

We are all convinced supply levels are low but there will be some Hay stashed away in sheds where there has been a combination of good Grain Crops and strong Hay yields.

Another thing playing out is that prices for finished Cattle and Sheep have been pretty strong. This has probably meant that Farmers finishing stock were happy to pay the price we saw three weeks ago, the latest price rise will test buyers resolve. People trust a stable market but become much more insecure when supply and demand pull against each other in a fashion like we see right now.

As for the forecasted rain, it's just that, a forecast, but it's looking promising and fingers crossed it can be the start of a turnaround that is very much needed. Like the cheque in the mail, we will just have to wait.

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

Cereal Hay prices were floating around $250/mt in our last report; now it's getting close to $300/mt

Canola Hay has had a similar rise in the last two weeks and is also sitting around the $300/mt mark.

Vetch Hay was $320 in our last report; now it's ranging from $350-400/mt if you can find it.

I travelled through the Western Districts of Victoria over Christmas and saw a lot of Rolls in paddocks. We are just starting to see the Roll/Round market kick into gear with good numbers being sold in the last week.

Straw prices are all over the shop, with prices ranging from $120-150mt depending on the circumstances.

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

Bonnie Kenner - North East Vic based
Bonnie said - A lot has happened in regards to the Hay market over the last fortnight, with demand skyrocketing due to the bushfires currently burning across Australia and the ongoing drought. We have very few listings for Cereal and Vetch Hay at the moment and we’ve seen a price increase across the board. What we’ve got left is mostly rolls which is a bit of an issue for the distance buyers. There are still some large quantities of Cereal straw available and the prices are holding fairly firm at this stage (up to $150/mt ex-farm), with it proving to be a very viable option for many buyers given the scarce availability of Hay. There is a lot of talk at the moment about how much Hay will be available over the coming months, unfortunately, it is hard to estimate at this point in time.

Mike Pickard - Southern Queensland based
Mike said - Hay is in very limited supply. Any parcels of any size are being snapped up very quickly. Prices are up due to limited stock levels. Although there seems to be a reasonable mountain of Straw this won't take long to chew through with current demand There is a lot of competition out there for what is left, eg drought/fires. Some website listings have been closed due to the fact that Farmers have decided to keep for themselves.

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Paul Grayling - Mallee Vic based
Paul said - We are currently seeing supplies of all Hay dwindle and at a fair rate of knots. Prices are sharply rising with a lack of availability and an excess of demand. There will be some parcels being "sat" on until the prices lift. There is plenty of Straw available but who knows how long this will be around for.

Shane Ruyg - Queensland based
Shane said - What a fortnight it's been and how things have changed rapidly in such a short time. Along with the ongoing drought, we have now seen the devastating fires throughout the Country. This has now created an influx of new buyers wanting Hay along with the charities associated. It has also stretched the supply levels, which has created a huge price increase. The likelihood of much Hay remaining in the next couple of months is unlikely, which is a huge concern for buyers. What this will mean is the Straw job will increase along with supplements like Grain, Almond Hulls, Pulp, and many other additives to get the end-user through. I predict that we are going to see unprecedented pricing on feed supplies. With very little Hay on our site, already I worry where this is all going to end.

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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