Darling Downs

Grain commentary

Hay commentary

Cereals are currently being sown and acreages are about average. The rain has been extremely timely for those that got their cereals sown.
As feedlots find trading conditions challenging their demand for hay and straw is weakening. For the quarter to 31^st December 2011 feedlot utilisation was at 74%
There is increasing inquiry for hay, mainly lucerne to maintain milk production.
Demand for Lucerne from the horse market is strong with small bales at around $8 each. There is pressure on supply of premium grade hay due to rain affecting quality. It is anticipated that prices will rise further given the lower local supply and also now that NSW hay will be now taken out of the supply chain with large losses of lucerne stands throughout the Riverina and Central West.
The market for lucerne for dairy cows is somewhat different. Prices have retreated due to the availability of bleached hay that horse markets do not require.
Hay demand from the dairy sector is low at present with summer rains supporting good pasture production
Lucerne hay stocks have recovered following the big wet of last year and prices have eased
Hay sheds are filling with the advanced progress of lucerne cutting this season
Lucerne and cereal hay stocks are healthy in the Granite Belt
Given the massive rains of January there was increased consumption of fodder by dairies and feedlots
This short term trading activity to western areas has now eased
Some ongoing demand for cereal straw continues from prior contracts but demand is diminishing. Cattle on feed are lower this year and demand is lower. Feedlots are currently running at around 68% of capacity.
While some straw did get baled without being rained on there was a significant portion that was spoilt with weather damage and as a consequence was not baled
Reasonable paddock feed is available to livestock, however as summer pastures progress the necessity for high protein hay will increase.
The amount of cereal hay produced in the region is lower than normal. There was little opportunity to sow given extremely wet soils during autumn.
What cereal hay was produced is of good quality. Some rain did fall on late cut crops.