Hay Report - Low supply high demand market

For the fortnight up to the 10th of July 2024.

By Dwain Duxson

We had a conference to attend early in July, so we had to drive from our home (Fook Farm) in Central Victoria to Wagga Wagga. When we go somewhere, and the deadline is not super tight, we like to do the back roads so we can get a look at what is happening in the real world. We crossed the Murray at Corowa, and things only improved ever so slightly on the way up from a Crop point of view. Pastures were all pretty much in green drought mode, with next to no feed avaliable. The main takeaway was how patchy Crops were on the heavier ground.

From a new season Hay perspective, things have a bit of a way to go. In the main Hay growing areas in SA, Vic, and Southern NSW, we are getting rain in dribs and drabs, and as I said in The Farmers Club Newsletter yesterday, we can limp through the Winter just so long as it rains when things start to warm up come mid-August. Outcomes in these Hay-growing areas will be rain-dependent, but on the positive side, the potential is still there if things go our way. Other areas of NSW and Queensland are kicking some goals, and WA has turned around dramatically. 

It's still a low supply, high demand market, and that pushed prices up over the last fortnight.

The lads have been busy selling what's on offer with plenty of tonnages moving each day. We keep saying that supply is tight, and that is correct, but stuff keeps popping up. What a wonderful opportunity for sellers to have a cleanout, one not to be missed.

It's been heartening to see a lift in the Sheep and Cattle markets. I just hope this rise is sustained and we can see some confidence come back into the market. Those who are feeding Livestock are doing such a wonderful job to keep animals in good order. It just goes to show how much better organised Farmers are when dry or drought conditions come along.

The AFIA Hay Conference is coming up again soon. This year, it's at Coffs Harbour and starts on July 23rd and runs through to the 25th. Unfortunately, we won't be there this year. See the link here.

Check out Kelsey Miller's interesting article here and a follow-up here on how Hay Trading/Buying/Selling meshes in with finance and how, in times of high demand, some will require a form of term finance to get through what is usually a tighter cash flow period. For any replies to his article, please email kelseym@delaypay.com.au 

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

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

Good Cereal is selling in the $320 to $350 range, I bit higher from the previous fortnight.

Likewise with Vetch. The best quality 2023 Vetch Hay is in short supply and has lifted in price to a range between $415-$435 a tonne.

Straw is one of those things that is pretty negotiable, depending on quality. We are seeing some parcels sell for $80 and some at $140 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 has seen some Rain in areas; however, the need for feed is still there. We are still shifting Straw and Hay, but the options are dwindling as far as quality goes. Finding exactly what you are after is a tough gig at the minute. There are options out there, but the top-notch Hay that everyone is chasing is proving harder to find.

Shane Ruyg - Qld based

Shane said - We've seen another solid fortnight of Hay and Straw sales with lots still heading to Southern VIC and SA. Stocks are getting light on with a few unexpected lots popping up, and pricing seems to be increasing with the demand. Good quality 2023 Vetch Hay is selling anywhere between $415-$435 and Cereal Hay $320-$350. Cold weather is keeping things dormant atm, and hopefully, the sun starts to come out and warm things up so we can start seeing some Feed pop up while Sheep and Cattle prices slowly improve.

Mike Pickard - On the road

Mike said - Current season Hay is running out quickly or being pulled from the market for own supply. People are still chasing good quality Hay. If anyone out there has any, good prices are being paid. There has been a pick up in Straw enquiries throughout Northern Victoria and the Riverina area of New South Wales. Hay inquiries are starting to pick up in Queensland. With Feedlots requiring Hay

Jim Oehms - Northern Country, Vic based

Jim said - There is still consistent enquiry on all varieties of Hay and Straw, with parcels moving around all over the place. Vetch has been the most predominant and sought-after. It will be interesting to see what this current rain band will bring to us all, as some have had little, and some have had more than enough at this time. Some I have been talking to who have Hay are wondering whether to get it listed now. My same answer to all is, "Get it up, and it will go if you price it right", as it won't be too long until new season Hay comes onto the market as well. Also, a lot of enquiries I am getting are going over the feed tests first. (actually what some look at first before the price). 

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.

Buy now, pay later for Hay! Try DelayPay today.