Hay Report - Freight costs bite

For the fortnight up to the 27th of November 2024.

By Dwain Duxson

We all know that the Hay industry is a feast of famine one, and right now, we are probably about in the middle of those two extremes. Hay demand is thereabouts, but no records are getting broken as buyers take a more cautious than ever approach about what and how much they purchase. Spot loads or hand-to-mouth buying is the order of the day in this market, where Cattle and Sheep producers are trying to claw back some of the losses from the previous 2 years.

It was only a month or two ago that we thought there would be Truckloads (literally) of Hay out there to choose from, and prices for Cereal Hay would come back under $200 a tonne. That never eventuated, and we now look like we are entering the opposite scenario, where supplies might be tight.

Hay is coming onto the market at a steady rate, and many have indicated that they will list their Hay once Harvest is over and in the bin.

Reports out of Southern Victoria are that they might only ever get 1 Silage cut off their paddocks when they would normally get 3. This means that Dairy Farmers will be on the lookout for Hay over the summer and autumn.

If it's a long, hot, and dry summer, we might be found wanting come autumn as far as supplies are concerned. There are two things here: We don't know how much Hay is out there, and we don't really know the demand levels for what could go out. The likely scenario is that it will be a consistent middle-of-the-road level of demand right through until autumn. The hand-to-mouth and spot-load scenario we are experiencing now will likely continue.

Another thing simmering in the background is the cost of freight. The old day of $4:50 a km is long gone, and it's getting to a point now where the freight cost can be the difference between selling and not selling.

For any Hay-related questions, ring one of the sales guys.

For 6-month payment terms through DelayPay, give Kelsey and call on 0409 117 730.

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

New Season Vetch is $350 to $400 a tonne, depending on where you are. A slight rise in the last fortnight.

The best Cereal/Oaten Hay is ranging from $255 to $305 a tonne, which is slightly up.

Lucerne Hay is around $400 a tonne.

There is not much action on the Straw front, but the very best Shedded Straw is making $150 a tonne.

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

Paul Grayling - Mallee, Vic based

Paul said - Paul was unavailable for comment at the time of writing.

Shane Ruyg - Qld based

Shane said - Slower fortnight with the Hay job with just spot loads and a few stocking up with the likelihood of a bit of shortage in areas. Hearing now that the rain has/will cause some damage with Crops shot and the Straw going black and mouldy. This will put a dint in the Straw job this season, which again is a real shame as it has been one of those seasons where nothing seems to have gone right!

Mike Pickard - On the road

Mike said - There has been inquiry on Organic Hay, especially from the Pastoral areas of the top end of South Australia and the Southern areas of the Northern Territory. Some good Wheaten Hay selling into the northern parts of Victoria with good sugars. Bit of Straw is selling mainly for bedding and also as a mix in stock feed. There is Hay being stockpiled in areas of northern New South Wales and Queensland ready for delivery into the Feedlot. Demand will pick up in the New Year for the next mustering season where they'll be looking for Hay for Weaners.

Jim Oehms - Northern Country, Vic based

Jim said - Well, although we never like to knock back some rain, it has definitely come at the wrong time as it has held up the Harvest for a lot I have been speaking to. They have said if we got this a month ago it would have been more welcomed. There has been some talk about downgrading Hay from this rainband and maybe some rot, too. There will be Hay starting to make its way onto Farm Tender as a lot I have spoken to are nearly finished Baling and will get it listed. One gentleman I was talking to a few days ago asked if it was worth getting a feed test, and I said to him, if he wants a better opportunity to sell this, it would be best too, as most that buy Hay are looking at Feed Tests. Transport will also come into effect with any Hay purchasing, from what I hear.

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

Jim Oehms -- 0481 102 288 or jimo@farmtender.com.au

Or 1300 Farming (1300 327 646)

Introducing Load Looper, the invention designed by Ian and Andrea Hamilton, who are Farmers at Tatyoon. Ian best describes how Load Looper works here. "Load Looper is a weighted ball device that attaches to a loading strap to carry the strap over the highest legal loads and simplify the loading process.

To watch a video on how it works or to buy Load Looper go to the website here.

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