South East SA

Grain commentary

Hay commentary

Good quality hay is becoming increasingly difficult to source locally and buyers are having to look further afield for good quality cereal hay.
Trading activity is consistent with strong support from beef producers focused on pasture and cereal hay for maintenance rations.
There is very little premium quality cereal hay available to the domestic market as exporters have been active buyers over the last 5 months securing what volumes they can.
It is now getting too cold for lucerne hay production and many growers are grazing lambs in these stands.
With the lucerne production season coming to an end, supply over the next 6 months will be under pressure given that a large majority of lucerne stands in NSW have been decimated and will not be able to be bought back into production this year.
A continuation of dry conditions over the past 6 months has lead to poor volumes of pasture feed and light volume of hay
The timing of the autumn break will have a significant impact on the hay market this year, even with a favourable break, pressure will be on supplies. This region is generally a consistent consumer of hay in the late autumn and winter.
The lucerne hay market of the south east has come alive in the past month
The initial demand from hay exporters began the marketing season at $150-$170 ex farm in the Naracoorte area. This is the first time in 15 years that there has been substantial exports of lucerne hay
Subsequently demand from sheep and beef producers has pushed lucerne prices up around $30
Less hay was produced last spring in response to the favourable grain prices and the poor hay marketing year this time last year
Straw baling is all but complete and exporters have been keen to source straw from SA given the extremely wet conditions in WA ruining the quality of their hay and straw
Cereal hay availability to the domestic market is limited. Export plants have been keen buyers of oaten hay as their national supplies have been severely affected by the wet hay harvest in WA.
Given that there was little behind the baler trading activity sellers are now content to sit on what they have in stock and see what happens in the autumn.
Many lucerne growers are completing their fourth cut of hay and expect to either graze or ensile further growth in autumn.
Lucerne hay quality is quite good and there is solid demand from chaff mills
Trading of south east lucerne to NSW and QLD has stopped as lucerne crops up there are now able to supply their local markets.