Hay Report - The demand and supply crossover

For the fortnight up to the 12th of June 2024.

By Dwain Duxson

It's been a fortnight were demand and supply have crossed over. What I mean by that is that demand is now outweighing supply whereas a fortnight or three weeks ago, supply was keeping up. This is of concern to those buying Hay because, as buyers, we want options and not too much competition. The scenario now is that we have limited options and plenty of competition.

So, for many, there is no holding back, for hesitation can mean missing out, and that can be frustrating with hungry stock in the paddock that need feeding.

As I mentioned in the last report or in one of the newsletters, many of the driest spots are in the highest stocking rate areas. This has amplified the supply problem.

I was wondering if we will ever get to a point where people buy Hay in advance so we can eliminate some of these supply and price rise issues. But it's the only industry I can think of in Ag that is feast or famine. When there is no demand, you can't sell a cracker; when there is full demand, you could sell 3 times over. I guess sellers have geared up to carry stock over this period of low demand by building Sheds, etc. But what if some buyers took the initiative and started building Sheds and reverse-engineer how they bought and could put some of the savings of buying low into the cost of such infrastructure?

On a bright note, the Sheep and Lamb market is picking up and showing signs that this time, it's going to be sustained. One hopes anyway. I was talking to a Cattle trader from NSW this week, and he has pulled the trigger on buying 800 Angus Heifers at a certain price point. He has sent his commission buyer out to sales down the East Coast and is confident he will have his order filled by Friday.

I will finish off by saying it's a great chance to sell, and by listing, you will get competition on your Hay from several potential buyers.

Check out Kelsey Miller's interesting article 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 or Mieke on 0455 888 392.

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

After some steepish price rise over the last month or so we have seen prices settle over the last fortnight.

Good Vetch and Clover Hay is selling up to $350 a tonne.

Straw is one of those things that is pretty negotiable, and most of the latest sales have been around $100 a tonne. If anything, it has risen a little.

Lucerne Hay is selling at around $400 a tonne.

Good Cereal Hay is getting up around the $300 a tonne mark.

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 the job continue gathering momentum with parcels selling daily. Pricing has started to shift as the supply of good quality Hay diminishes. Protein Hay or Production Hay is starting to get scarce with Cereal's selling well. We have also shifted quite a lot of Straw. Location and Bale weights have a major say on what shifts along with Feed Tests. 

Shane Ruyg - Qld based

Shane said - The weather down south has remained dry, and the Hay is moving at a rapid pace, and it looks like continuing till Spring comes around. We are starting to see Vetch and Cereal stocks start to dwindle down with only a few quality type parcels available and the rest is either rain damaged or a few years old. With this, we are seeing more Straw and Feed Grain moving, with Farmers looking at diversifying where they can to keep the supply up to their stock without breaking the bank. If you have any Hay, Straw or Feed Grains available, please list or contact us as demand is very high, and pricing is continuing to rise as stocks start to diminish.

Mike Pickard - On the road

Mike said - Mike is on leave at the time of writing.

Jim Oehms - Northern Country, Vic based

Jim said it has been another busy week with the Hay job. Still a lot of queries on a wide variety of Hay, with Straw, Vetch, Wheaten and Barley most popular. Many are grabbing what they can get their hands on as going pretty quickly. There are also a few that have Hay and asking what prices are doing before listing it up. Most I am talking to are asking about feed tests. I would say that things will not slow down for a little while as some areas that were expecting some rain had not got what was expected.

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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