Hay Report - What are the opportunities for buyers and sellers?

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For the fortnight up to the 1st of November 2022.

By Dwain Duxson

It's been an exceptional fortnight for Hay sales. Keen Hay buyers have been on the lookout, searching for old-season parcels that will suit their needs.

All the Hay trades have been old-season stuff. It's been a good opportunity to clear some stocks for sellers. Unfortunately for these sellers, this Hay more than likely won't be replaced with new season Hay.

It still keeps raining, and the floods are still happening, so getting on paddocks is impossible for most. However, there is the odd person out there chancing their arm.

The scenario is probably worse than reported a fortnight ago (it's wetter). We are still tipping around 10 percent of Hay made compared to last season.

What are the opportunities for Hay sellers?

• Anyone who can do Silage should do Silage.
• Old season Hay is what buyers are buying at the moment, supply is dwindling, but there is still some about
• Header Trail Barley Straw will be sort after as a lesser quality replacement for Cereal Hay.
• Any type of other Straw should be considered, but it's something that only has a certain level of demand.
• With Straw, keep an eye out on how much Straw is made in Queensland and, to a lesser extent Northern NSW
• Anyone who has established Lucerne plots should be looking at multiple.
• There will be opportunities around Summer Crops if they can get them planted.
• Think about next year. 

What are the opportunities for Hay Buyers?

• For the Eastern States, South Australia is probably the best place to look.
• Western Australia should have a reasonably normal Hay season, so its domestic market should have decent supply levels.
• Keep your eye on Farm Tender and talk to the sales guys about Hay trends and where the market is at.
• Buy as early as possible. There hasn't been a great deal of price movement upward at this stage.

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

Hay prices have risen only slightly over the last fortnight, but our thinking is that there will be a more substantial price rise somewhere along the line. 

Medium-quality Vetch has only risen in price by about $10 a tonne over the last fortnight with parcels selling around $230-$250 a tonne.

We saw Lucerne Hay prices in a range of $285-$350 a tonne over the last fortnight.

Cereal Hay demand was strong and was up $10 a tonne to average around $220 a tonne.

There is a window of opportunity to sell Staw between now and Harvest.

All prices quoted are ex GST and ex Farm.

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 lift in buyers procuring Hay as there doesn't look like there will be a lot of New Season Hay being produced, and what does get made might not be top shelf. Pricing hasn't done much as yet, but there will be a lift moving forward. Supply is definitely dwindling, with a lot of sellers holding on to there Hay for there own Stock.  

Shane Ruyg - Qld based

Shane said - The past fortnight has seen the Hay job explode with failing Hay crops happening regularly due to the rain and average weather most are experiencing currently. We have seen a shift in production for some who are now doing Silage instead, which will help the ever-dwindling supply that is now happening. Lots of old-season Hay in all forms are moving, with the Dairy market being one industry that will suffer most if they are unable to find good protein Hay. Otherwise, they will be relying on the Grain Market, which is quite high atm and tipped to rise with quality issues we look like having with this season's Crops.

Mike Pickard - Travelling around 

Mike said - I was in Longreach last week, and I noticed several road trains of Hay coming in from the North West and heading East. Not sure whether it has come out of the Northern Territory or it's just local. From about Winton through to the East is pretty good in terms of season.

A lot of Hay listings are closing due to the fact the Farmers are keeping it for themselves or possibly will relist after Harvest. They will definitely be a price rise, but where it ends up, who knows?

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

Or 1300 Farming (1300 327 646)

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