Hay Report - South to Feed the North

For the fortnight up to the 13th of September 2023.

By Dwain Duxson

For some, the new Hay season is upon, and this bout of fine weather will see many more start the Mowing/Cutting process soon. It just looks like what might be a good Hay season for the Southern part of the Country.

We put the call out for some good Hay making conditions, and it looks like it could happen. But I don't want to put the mozz on things.

We need to think very deeply about how this new Hay season might pan out and what some of the scenarios might play out in the next couple of months. We need to be adaptable with our thinking and make decisions for the time. Plans will get thrown out and replaced with something different.

Whatever the case is, one thing we know is the South will have to Feed the North because the South is where the Hay will be, and the North is where it will be needed most. That's one scenario. Another might be that Livestock prices might warrant that they only maintenance Feed Cattle and Sheep or use cheaper alternatives.

The cost of Freight is another thing buyers need to think about. Will there be Freight subsidies if it stays dry?

Another scenario is where are prices going to land, and will there be a gap between the selling price and what people want to pay? Another scenario might be that Hay/Grain Growers might not do as much Hay because they know it might be hard to sell.

Things are looking good in Southern areas of the continent, but what would happen if it stayed dry or we had areas unlucky enough to get a Frost? Already, there has been Frost damage in WA and small pockets of NSW. If Crops start struggling for moisture and still have bulk, they will be cut in a heartbeat. This could bring more Hay than expected onto the market.

As we mentioned in last fortnights edition, there will be a point in time where decisions have to be made, so options are your best friend.

There will be scenarios I haven't thought about that others are contemplating. As always, it's going to be an interesting couple of months. Good luck with it all, and don't procrastinate. The decisions you make will be the best decisions you can make at the time. 

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

Hay is shifting, and we are clearing some old stock, but it's like buyers are hanging out for the new season stuff. Could it be like the Boxing Day sales, as soon as it lands will there be frenzied buying activity? I am not sure about that, but we will wait and see.

Prices currently haven't really altered for weeks, and some are discounting to clear.

Good quality Lucerne Hay sold for around $400+ a tonne. 

Most of the Vetch Hay is trading anywhere from $170 to $240 a tonne.

Some Straw made up to $110 a tonne.

Good Cereal Hay is making anywhere up to $240 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 more Hay shifting, but with only small parcels shifting. There is a lot of anticipation out there regarding New Seasons Hay, which so far is looking like we might get a good run with the weather during curing. Something that hasn't happened for a few years. Pricing is an interesting conversation with a few things to be weighed up around this. Some of the things that will determine the actual selling price will be Freight components, Livestock prices, and quality. All of these will have a big impact on the end user, so it will be interesting to see where pricing lands after the dust settles and things start moving. 

Shane Ruyg - Qld based

Shane said - With New Season Hay just about on our doorstep we are starting to hear that cutting of Vetch has started in the Northern Mallee and Riverina and there will be some baling done this weekend in these areas. Pricing estimates from customer feedback for Vetch Hay will be anywhere between $250 - $350 ex-farm, depending on where it is located and quality. Feed Test will again be important, but the upside is we should see green Hay this year with the next 2 weeks forecasted to be hot and dry, which should make for good curing. We are also still selling old-season Hay, which has dropped in price considerably due to the new season and quality issues.

Mike Pickard - On the road

Mike said - There are a few buyers out there waiting to see what the new season Hay will bring in terms of quality and pricing. There needs to be a happy medium, otherwise it comes out of the realm of Farmers Feeding Livestock. Hay sales have picked up a little in the last week or so, but only small amounts, 1 to 2 truckloads mainly for Graziers just to get them through until some spring rains hopefully eventuate.

Jim Oehms - Northern Country, Vic based

Jim said - I have been getting a few people ringing and asking what they think the new season Hay job pricing will be, and I have told them all that until it is cut and listed, then we will both know. Mostly, Vetch, Wheaten, and Oaten are still very popular, and we are moving a fair bit of this as well. Mostly heading up North, and its protein and quality are what they are after. Talking to one guy in the Mallee, and he said some are bombing their Crops as they are not going to be worth baling. These are just certain areas, though. Also talking to a few that do transport of Hay, and some are doing double-ups with a jockey to keep the Trucks moving.

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)

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