Hay Report - Finding a way

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For the fortnight up to the 13th of December 2022.

By Dwain Duxson

We have great faith in the Agricultural system. It and the people involved have a knack for filling a void if needed and being able to adapt to different and wide-ranging situations that present. 

In other words, we seem to be able to find a way when it's needed. 

The Hay job was dead a buried a month or so ago. Since then, the weather has been kinder, and people have managed to spit something out the back. 

We were much gloomier about supply back then than we are now.

We pointed out in this column a couple of weeks ago about some opportunities we thought might be a possibility. Read about them here. The Lucerne Growers are, in part, filling the void in the Protein market. A space they used to own before Vetch came along. With moisture in the ground, the dryland guys are looking at several cuts this Summer. 

Barley Straw behind the Header is going to be a goodish substitute for Cereal Hay. There are guys looking at planting Summer Crops to produce Hay. Silage quantities have lifted, and it's popular because you can get it in a bale quick.

It's not cheap to produce Hay, even if you have your own Equipment. It's still a balancing act, though. We spoke to one guy in the Riverina who cut an estimated 500 tonnes of Lucerne and wanted to know whether it was worthwhile cutting another 500 tonnes they had there. We suggested they did, but he was conscious of the cost associated with the extra bit and whether he was going to get a quick return to cover the cost and make some margin.

With costs on most things that Farmers buy at some of the highest percentiles ever, I guess it's a valid point to question the cost of doing extra. In years gone past, we may have just done it and worked it out later, but we are in a different era right now.

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

We have seen demand back off a bit, maybe because the panic has eased a little with the expectation of more Hay around than first thought. 

Lucerne Hay is popular, and the Protein guys are fully focused on this. Prices have kicked a little from a fortnight ago, and as we get those first cuts out of the road, we expect the quality to pick up. If Lucerne Hay was $300 a tonne a fortnight ago, it's more like $310 now.

The new season Vetch quality is pretty low, so we are looking at around $250 a tonne and maybe more if you can snag a better NDF result. Buyers will now go for Lucerne over Vetch every day of the week.

The Cereal Hay market has been pretty quiet, and we even sold a parcel of old season Canola Hay the other day.

Straw sales were pretty quiet this last fortnight.

All prices quoted are ex GST and ex Farm.

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

Paul Grayling - Mallee, Vic based

Paul said - We are starting to see some more listings coming onto the site, with some being of lesser quality, but some tests are coming back a fair bit better than expected. Six Weeks ago, the general consensus was there would be bugger all Hay around. Feed tests are imperative this season, even more so than usual, as most buyers will need to buy off a Feed test, so they get bang for their buck. I am hearing that a test for mould has been a common request from clients of a few Hay Traders. 

Shane Ruyg - Qld based

Shane said - The past fortnight, the Hay job has backed right off. Lucerne Hay has been the most popular, with lots of listings coming on and a few sales amongst them, with Chaff producers looking to stock up before stocks become low. I have heard the Exporters have been actively out there buying up what they can on spec. All indications are that the pricing is ok and fair for the quality that is out there this year.

Mike Pickard - Travelling around 

Mike said - Speaking with a few locals around Northern New South Wales and Southern Queensland, there seems to be a lot more emphasis on Hay this year, especially Straw. There seems to be a fair bit available locally as people make the most of their Crops.

We are seeing a reasonable amount of Hay being produced in the Southern areas. Quality is going to be the factor. Feed Test a must

End of message

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

Or 1300 Farming (1300 327 646)

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