Hay Report - The dawn of a new Hay season

For the fortnight up to the 21st of August 2024.

By Dwain Duxson

We haven't done a Hay Report for a month, which is my bad because I have been very strict on getting it out every fortnight. I won't make an excuse. Appologies.

It's been an interesting time since we wrote this a month ago. Demand has gone from full-on to taking a few steps back in the last week or so. There is still plenty of Hay moving, but not in the quantities we saw back then.

What's changed things? Rain would be the main culprit and areas to the North would be starting to feel some sun on their backs as spring approaches. If you have moisture things should start to fire away.

There has been talk of frost damage to Crops in Central Queensland, which might mean some of those Crops will be dropped very soon if they haven't already.

So, with that in mind, we are on about the 2nd last step before we open the door to a new Hay season. And with growth plentiful in the North and over in WA, if they wanted to cut Hay, they would get plenty of bulk. Down South, in the main Hay growing regions of Victoria and SA, things are looking a fair bit different with less bulk and the realisation that some Crops and Pastures might be bulky enough to make Hay. There is still time, but it's a crucial 30 days ahead and rain will be needed to realise some potential.

With the low supplies of Hay and a bit of a drop in Grain prices, Cropping Farmers that have decent Crops will be seriously thinking about cutting Hay as the return per hectare might outweigh taking it through to Grain. This will be in the decision kit bag that Farmers will weigh up, as many would have empty Hay Sheds on their properties. We think there will be demand for New Season Hay, and just going by the drop in demand, perhaps buyers are hanging out.

There has been talk of frost damage to Crops in Central Queensland which might mean some of those Crops will be dropped very soon if they haven't been already.

Check out Kelsey Miller's 4th instalment of "Cashflow and the Hay Job". For any replies, 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?

The best Cereal Hay made up to $330 a tonne this week, which is back a bit on where it was.

Top 2023 Vetch Hay peaked at $400 a tonne this week. This is also back slightly on a month ago.

Good quality Lucerne Hay off Irrigation is made $450 a tonne, and off Dryland, it is making $350 a tonne.

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 - The past fortnight has seen the Hay job stall a bit with some welcome rainfall in areas that were very thirsty. With reports of New Seasons Hay not being all that far away from being dropped in parts of NSW and North West Vic, some fairly handy Vetch Hay could be hitting the market in the near distant future. Hoping for a good run of weather after cutting and whilst curing, it could see some stocks replenished with quality Hay. Fingers crossed.

Shane Ruyg - Qld based

Shane said - Hay is still moving with spot loads and a couple of larger deals happening but has dropped off a tad from the last month or so. With the green drought down south, we will see the demand for Hay continue for a while yet, and we are hearing that some Hay will be knocked down over the coming weeks. Lets hope there will be some good parcels put into sheds or in stacks or rows for the coming season as last years Hay is very low. Promising rains have happened over the past week in some areas, and let's hope that the change in the weather pattern continues, and we get the wet spring that the weather gurus have been predicting.

Mike Pickard - On the road

Mike said - Just talking to a few there is talk there may be some frosted Crop in the Central Highlands of Queensland. They are talking about Baling possibly starting as early as the end of next week. Good sales of Vetch Hay on the cheaper end of the market that's a couple of years old. Also some good sales of Clover and Barley/Vetch mix at the top end of the market. There is talk there could be a fair bit of Straw available come the end of September coming out of Central Queensland as well.

Jim Oehms - Northern Country, Vic based

Jim said - I have noticed over the past week and since the rains have been covering some wide areas that the demand for Hay has dropped a little, but saying that, it is still in high demand. Western areas of Vic are still the main Hay enquiries. All varieties are being queried, including Vetch, Wheaten, Oaten, Pasture and also Silage. I have also had a few asking what prices will be like with the upcoming season of new Hay once cut and Baled. I would say that if you do have Hay in the Shed, get it listed up, as the demand is still high.

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

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