National hay report

National background comments: report for week ending 23th June, 2017

The next update will be on Friday 30th June 2017. Direct links to reports on each dairy region immediately follow this national hay summary.

NATIONAL SUMMARY

The difference in supply, demand and outlook for the season ahead between different regions of Australia increased this week. In the north, supply of quality cereal hay is low and demand is growing, as the prospect of another light production year is becoming increasingly possible, following the lack of rainfall. Protein hay is drawing interest and experienced a price hike in recent weeks as good quality is difficult to find. Straw and pasture are even more elusive.


In contrast, the oversupply of hay continues in southern regions and following a strong autumn rain period, another big year of production is predicted. The oversupply has caused pest problems and weather damage.  


Reports this week indicated that unlike regions along the eastern seaboard, the west is yet to experience any significant break, with little rainfall since January. 


Northern Australia - Summary

  • Summer crops were poor this year as no significant rain fell during the summer period. There will be less traded this year as a result.
  • Interest in cereal hay is growing, however farmers are cautious to buy as feed is transported from South Australia resulting in large freight costs. There’s pressure from growers in the south to increase prices but buyers aren’t desperate enough to pay.
  • Comments suggest that without significant rainfall in the coming few weeks winter cropping season will be poor. Another tight year could put Queensland regions in a tight spot for supply


Southern Australia - Summary

  • Mice are a growing concern following a massive year for hay production.
  • There continues to be oversupply of feed in most southern regions. Most quality feed seems to be sitting in sheds in the Goulburn/Murray Valley and in South Australia.
  • There is very little demand across most southern states and nowhere near the required demand to take up what’s available on the market.
  • The cropping season in off to a good start and farmers have grass feed in paddocks.
  • Overall a mostly positive outlook for farmers who still have strong supply in sheds and can acquire feed at reasonable prices. Poor milk prices continue to put pressure on many dairy farmers and limit spending. 
  • The majority of seasoned growers have put in less wheat this year following last year’s oversupply.


Western Australia - Summary

  • While domestic trading is mostly quiet, export remains strong and is dictating pricing of higher end fodder. 
  • Flooding, frosts and largely unreliable weather during harvest last year have meant a great variability in quality.
  • Careful inspection of fodder and obtaining feed tests is essential to ensure quality in the region at the moment. 
  • There are growing concerns over winter crops as much of the west is yet to experience a decent break.
  • Pasture availability is dwindling for almost all regions and supplies in sheds are good, but might be put under pressure this year.


23-June-2017 Hay
Cereal Lucerne Straw Pasture
Atherton Tablelands Price Range N/A   N/A   N/A   $240 $260
  Change $20
Darling Downs Price Range $300 $350 $400 $450 $200 $220 $250 $270
  Change Steady Steady Steady $15
North Coast NSW Price Range $250 $300 $350 $420 $160 $200 $200 $260
  Change Steady Steady Steady Steady
Central West NSW Price Range $140 $190 $250 $330 $100 $120 $150 $170
  Change Steady Steady Steady Steady
Bega Valley Price Range $200 $230 $320 $350 $120 $150 $180 $210
  Change Steady Steady Steady Steady
Goulburn / Murray Valley Price Range $110 $150 $200 $250 $110 $140 N/A N/A
  Change -$5 Steady Steady N/A
Gippsland Price Range $190 $210 $290 $320 $130 $160 $160 $190
  Change Steady Steady Steady Steady
South West Victoria Price Range $150 $190 $280 $310 $120 $130 $140 $160
  Change Steady Steady Steady Steady
South East South Australia Price Range $120 $160 $220 $260 $90 $120 $120 $150
  Change Steady $10 Steady $65
Central Districts SA Price Range $110 $140 $230 $260 $80 $110 N/A N/A
  Change Steady Steady Steady N/A
South West WA Price Range $160 $220 $450 $520 $90 $110 $150 $200
  Change Steady Steady Steady Steady
North West Tasmania Price Range $180 $220 $330 $350 $100 $150 $160 $190
  Change Steady Steady Steady Steady

Notes: Hay prices are delivered, GST-exclusive based on shedded hay without weather damage, of good quality and colour. It should be noted there is a wide variation in quality for hay, so prices are indicative for a mid-range product. Price change is the change since the previous hay report.

Change in price is the change since the last report. Hay prices are delivered, GST exclusive, based on shedded hay without weather damage, of good quality and colour. It should be noted there is a wide variation in quality for hay, so prices are indicative for a mid-range product.

This report has been commissioned by Dairy Australia to provide an independent and timely assessment of grain and hay markets in each dairying region. It should be remembered that actual prices may vary for quality or other reasons. Whilst all reasonable steps have been taken to ensure the accuracy of the information contained in this report, to the fullest extent permitted by Australian law Dairy Australia disclaims all liability for any inadvertent errors and for any losses or damages stemming from reliance upon its content. Dairy Australia recommends that all persons seek independent advice and, where appropriate, advice from a qualified adviser, before making any decisions about changes to business strategy.