National Hay Market Report July 2021

KEY POINTS

• Growers are making room for new season product by selling now at good prices.
• Buying demands has stayed consistently low.
• Prices drop on protein hay in NSW by at least – $20 per ton.
• Mice begin to slow with the cold & wet weather in some areas.

OVERVIEW

There has not been a huge change in market conditions since May. During June rain fell in a majority of Australia with fodder demand continuing to stay low.

Many growers have noticed a significant reduction in mice numbers, this can be attributed to the colder weather and the breeding cycle of mice slowing because of this. However, the mice damage that was done to hay and straw supplies still exists and Feed Central is working with suppliers to identify what product can be sold and what product cannot be sold.

QUALITY & SUPPLY

Our team spent a significant amount of time throughout June talking with growers about our Web Marketing service. We sensed that many growers were struggling to sell their product through alternative marketing platforms and weren’t getting results. Our system offers an all-inclusive package, including an independent Feed Test and On-Farm Inspection of Hay, which is what buyers of hay want and many suppliers are coming to this realisation.

In the past fortnight, we’ve reconnected with hundreds of sellers of hay wanting to move their product. Our Inspector Steve has been travelling within NSW, VIC & Riverina area conducting On Farm Inspections. Growers are coming forward with lines of hay and straw to list at competitive prices.

Feed Central has 562 lots of hay, straw and silage for sale online, that’s 211,966 tonnes.

DEMAND

Demand remained low throughout June. Sellers are now extremely wary that hay sitting in their sheds will be there next year if price movements are not made. Those looking to buy fodder now can purchase at great prices. Currently, there is Lucerne listed on the Feed Central system for $220 per ton ex farm and Cereal hay that is shedded under $100 per ton ex farm.

DAIRIES

Reduced feeding costs and increases in milk cheque payments have resulted in a positive outlook within the Dairy industry.

Dairies in SEQLD have received some wonderful rain through June, winter forage crops such as oats and barley are racing ahead with some even lodging due to the bulk feed that has been produced. Dairies in SEQLD are avoiding 2020 low quality Cereal hay that can be delivered for less than $300 per ton and are opting to buy 2019 high quality Cereal hay at prices ranging from $350-400 per ton delivered on farm.

Victorian Dairies at the beginning of June were chasing Vetch. Vetch was filling a shortfall in protein, however, towards the end of June many Victorian Dairies had established Ryegrass crops, therefore the protein shortfall had been covered. Some are now looking at putting quality feed in the shed to secure ongoing feed requirements at good prices, these dairies are not looking to spend any more than $260 per ton delivered on farm for good quality Vetch.

BEEF GRAZIERS

Graziers have been supplementing hay into their operations in 2021. Good Quality Hay, such as Cereal hay, will help slow the passage of green feed through the rumen and allow maximum absorption of the nutrients.

FEEDLOTS

Some contract top ups have been required during June however movement on cereal hay was limited. The price on straw lifted $10 per ton delivered Darling Downs due to mice pressure.

OUR CLOSING THOUGHTS

It is unlikely that we are going to see any significant kick in demand for fodder in 2021. The recent rain has given life to many silage and new season winter cereal crops, and this will place further downward pressure on the industry.

Please keep an eye on our weekly Feed Registry delivered straight to your inbox with a full list of hay listed for sale across Australia.

We understand the desire for market information, we are here and available to discuss market conditions at any time.

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