Hay Report - Thinking positively

For the fortnight up to the 26th of June 2024.

By Dwain Duxson

Hay's ongoing demand continued through the fortnight just gone with supply levels starting to become a concern. Paul said this below: "Some buyers are having to settle for what they can get as opposed to what they are really looking for". In other words, supply is tight for the good stuff, and buyers are having to stretch the specs in order to get something.

Another thing that is limiting supply is that Farmers who sell Hay and also have Livestock have re-evaluated the situation and decided, in their wisdom, to hang on for their own use. Nobody wants to get caught buying Hay after they sold out earlier in the piece. And buying back in is usually at a more expensive rate. I do know Farmers who have very strict rules around keeping a supply of Hay on Farm, with one Farmer who has Cattle and Sheep religiously always having 2 years supply of Hay stored undercover at any one time. We have had a number of Farmers who have had Hay listed on the site, only to withdraw it for their own use or piece of mind.

We do expect some Hay to come on the market in the new financial year, as some have been holding back and waiting. Just how much Hay will fit into this category is the $64,000 question. Let's hope there are some good volumes coming onto the market in July.

There are 3 types of Crops out there. Ones they are fully advanced (mainly NSW & Qld), ones that are poking through and ones that are yet to see daylight. The last two types are in the biggest Hay-growing areas, and that is a bit of a concern as far as the new Hay season goes. However, if we can limp through winter with bits and pieces (rain) that will advance the ones that are up and get the ones yet to come through, then we have a chance. Because if we can get them going when spring hits, and the rain comes (thinking positively), those Crops will catch up to give us enough bulk to get an average Hay season at the worst (thinking positively again). What are you seeing out there with your Hay Crops? Reply to dwaind@farmtender.com.au

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 or Mieke on 0455 888 392.

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

Prices have risen for good quality Vetch and Clover Hay over the last fortnight.

Good Vetch and Clover Hay is selling up to $380 a tonne, that probably a $20-$30 rise due to the lack of top-quality stuff.

Straw is one of those things that is pretty negotiable, and most of the latest sales have been around $110 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 a lot of listings sell with a few new parcels also being listed and shifted. The job is becoming very liquid as parcels are shifting on a daily basis, with some buyers having to settle for what they can get as opposed to what they are really looking for. Straw is also shifting, with supply seeming a lot healthier than that of Production Hay. Pricing has lifted somewhat, but the lack of A1-type Hay should prevent the rise from being too great. 

Shane Ruyg - Qld based

Shane said - With the weather remaining cold and dry in most parts, we are seeing lots of Hay and Straw continue to move around the states of VIC and SA. Some rain has come through the last couple of days, and some are forecasted for the weekend, but this has little bearing on what will be required to feed out to Livestock with Pregnant Ewes. Just one lot of Farmers are trying to keep abreast while the feed is non-evident in parts. We are seeing prices rise considerably, with good Vetch & Oaten Hay making $400 and $300 per mt, respectively, and Straw is starting to head towards the mid $100s. There is still some average Hay about from previous seasons, and is priced accordingly, but most of the better good quality Hay is just about dried up. WWe are hoping to see some more come online from the 1st of July, with some not wanting to sell prior to EOFY.

Mike Pickard - On the road

Mike said - The current season, Hay is running out quickly or being pulled from the market for own supply. 2022/23 hay is being sold, mainly Vetch and Cereals as demand is there during the cold season. In Queensland, there seems to be a pretty good season in the south and the west of the state. There is an area in the central Highlands/Coalfields where the demand for Hay is. Crops in that area are very hit-and-miss. 

Jim Oehms - Northern Country, Vic based

This week's Hay report is very similar to last week's report, as listing queries has been a hot topic for all Hay and Straw. There is a lot of Hay movement going into western Vic, S.A and southern NSW. From what I am hearing, Hay, which has been held onto thus far, will be looking at being sold shortly but will be at a higher price (not sure how much higher). With the rain this week, it has still been a hit-and-miss situation for areas that need it, but I hope they do get this over the next week. Vetch, Lucerne, Wheaten, and Barley Hay/Straw are the main movers. I will say it again, but most I talk to are after feed tests as well.

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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