Goulburn/Murray Valley

Grain commentary

Hay commentary

Hay commentary 

• Demand is quite consistent for lucerne hay from both equine and dairy markets. While prices are not making dramatic ascents buyers understand the limited supply gives them little room to bargain.
• There is a definite demand for oaten hay, however supply is limited and mainly being traded in rolls as export processing plants have devoured any cereal hay in large squares which meet their specifications.
• Lucerne trading is active however most growers are now into their final cut as conditions cool. Given a strong demand from the local dairy industry and an insatiable appetite for high quality hay from the chaff market there will be considerable pressure on supply over the winter period. The loss of lucerne stands in the NSW Riverina will multiply this effect.
• There is also the consideration that high quality lucerne is also keenly sought after by exporters for markets in Japan. The US is a traditional supplier of lucerne into Japan, however due to drought and a strong domestic demand in the US, Australian hay exporters can be competitive on price despite the high dollar.
• The rains across the GV are considered the break and given the amount of rain that has fallen it will take little follow up to maintain pasture growth.
• Pasture growth is positive as there is still plenty of warmth in the soil.
• Flooding around farms alongside the Broken Creek has meant that some silage pits and round baled silage has been lost
• The quality of lucerne hay coming out of northern Victoria this summer is excellent. The majority of the crop is suitable for chaffing and horse markets. Some producers who have arrangements with chaff mills were able to achieve $300 delivered but this price is much reduced now
• The straw baling season has finished and availability appears to be quite good, however exporters have shown increasing interest in quality straw with good length.
• Straw demand from dairies is quiet and traditionally remains so until the autumn and early winter. At this point there is little or no interest in straw. This may change as conditions cool and pastures have a higher moisture content.
• Vetch, a favoured protein hay for cows, is in short supply this year due to reduced acreages sown. Mallee producers are generally proud owners of vetch hay and are waiting for the Autumn demand before releasing tonnage to the market. Lucerne sellers are setting the price for legume hay at present with cheaper delivered prices due to lower freight costs. 
• Early harvested vetch crops around Nhill have tested extremely well and producers are happy to store their hay until demand strengthens. Though some later cut vetch crops did receive rainfall and ME levels are lower as a result. When buying hay insist on a feed test to assist in making purchasing decisions.
• Export plants have a large appetite for cereal hay this year and it is expected that as long as the hay meets their specifications, there will be little cereal hay available to the domestic market.