Farm Tender Hay Report - A cloud hangs over China's renewal of Export permits

A cloud hangs over China's renewal of Export permits

For the fortnight up to the 20th of April 2021.

The non-renewal of Export Hay permits from China continues to make headlines, as outline in this article today (20th of April). We gave this subject some air time in the last report, and it continues to be a worry for an already struggling industry. About a third of our Export Hay goes to China, and of the 28 permits issued last year, 25 have lapsed with no indication of when or if they will be renewed. This is a real pain for Exporters and their Grower customers. 

To add insult to injury, part of a brand new Hay Export facility at St Arnaud in Victoria, owned by Gilmac, caught on fire a week or so ago. Hay and Equipment were lost, as it was at Wilson's Stockfeed at Tocumwal, who also had a fire late last month. 

On a positive note, they are celebrating an unusual early break in WA with the Canola planting going in at break-neck speed. We have our first ever contribution (see below) from Murray Jones, our new representative in WA. If you're in WA and are looking to buy, sell or Auction something, give Murray a call on 0474 808 160.

Apart from parts of Queensland and WA, many areas have had little rain since the end of March. This combined with the end of La Nina and a very "colourless" rainfall outlook map for the next fortnight, has made things a little bit interesting.

Typical Autumn. One older Farmer in the Wimmera used to tell me, "it never rains in April". As we all know, it has before and will again rain in April, but what he was trying to portray was that April rains are very unreliable.

Farming is all about confidence, and a week or two without any change in the weather will have those with Livestock starting to scratch their head.

As mentioned in the last couple of Hay reports, demand has picked up, especially for Vetch Hay. But any growth in demand hasn't been evident in the last fortnight. Overall, demand has flatlined.

What's happened to Hay prices over the last fortnight?

Vetch Hay prices haven't changed. Good quality Veth Hay is selling at $200 a tonne. The lesser weather-damaged stuff from this season is making $125-$155 a tonne.

It's is tough selling Cereal Hay ATM.

Shane sold a parcel of 500 tonnes of Straw for $65 a tonne.

Lucerne Hay is making around $220 a tonne. 

We go around the grounds to see what our Farm Tender Salespeople have to say:

Paul Grayling - Mallee, Vic based

Paul said - The last Fortnight hasn't seen a lot of change in the Hay Job. There is low-level interest in cheaper lots of Hay, mainly for those current season weather damaged lots. There is still some enquiry for Protein Hay. Straw is still very quiet. 

Shane Ruyg - Queensland based

Shane said - A reasonably quiet couple of weeks with about six parcels of Vetch Hay that I was able to sell. I was talking to a few sellers who are seeing a bit of Hay on the roads. The early break in the South has run its race, with many paddocks turning brown, so we may see a bit more move over the coming months if it continues to stay that way.

Mike Pickard - Darling Downs, Qld based

Mike said - Not a lot happening this week. We had 15 to 20 mm of rain falling across the Darling Downs and Northern New South Wales. Everybody is gearing up for a big Crop plant as there is moisture in the soil. There also seems to be plenty of green grass around. Prices remain reasonably steady, with buyers and sellers in some areas unable to agree on pricing, so both are holding out. 

Jackie Elliott - South West, Vic based

Jackie said - Pasture sowing has been in full swing in Victoria's South West. Parts of the South West received 20mm of rain in the last fortnight. There has been a slight increase in Pasture Hay enquiry that will hopefully lift heading into the cooler months. 

Murray Jones - WA based

Murray said - Dry conditions last winter in some parts of WA has resulted in a lack of Feed and Water for Stock, yet others who had a good 2020 season are cruising. A big part of WA has had very good summer rains, putting a big dent in Hay sales. WA has sold 1.8 million Sheep to Farmers over East which is twice the previous record of 2010. With the early 2021 break from cyclone Seroja and with the reopening of the valuable Saudi Arabian live Sheep Export market, the demand for breeding Ewes will only increase. Canola planting is in full swing right now. 

Talk soon, EOM

Dwain Duxson - Farm Tender & DelayPay

For more information on selling or buying Hay contact the following:

Paul Grayling – 0447 069 082 or paulg@farmtender.com.au

Shane Ruyg – 0447 922 604 or shaner@farmtender.com.au

Mike Pickard – 0429 677 636 or mikep@farmtender.com.au

Jackie Elliott - 0400 808 550 or jackiee@farmtender.com.au

Murray Jones (WA only) - 0474 808 160 or murrayj@farmtender.com.au

Or 1300 Farming (1300 327 646)

Need to buy something? Try DelayPay

Payment terms for buyers and a spendable credit limit in 24 hours, go to www.delaypay.com.au. If you are keen to know more ring Kelsey 0409 117 730 or Dwain 0427 011 900

**List your commercial Sheep, Cattle, Rams or Bulls on our Farm Tender Livestock Exchange (powered by Farm Tender). Starting at 1% commission if you sell. Reach between 8000 - 10,000 potential customers per day. Contact our Livestock Marketing Agent Hannah Anderson on 0429 479 072 for more information