The Farm Tender Hay Report – Buy now because there may not be a later....

By: "Farm Tender" News
Water & Irrigation News
Apr 24, 2019
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Buy now because there may not be a later....

For the fortnight up to the 24th of March, 2019 - Volume 31.

This article is bought to you by CommStream Capital.

The old Fertiliser sales person would put out a fax to say "buy your Fertiliser now because it's going to go up $50 a tonne". The reason they did that was to sell more fertiliser and get people talking, they would run with the rumour that a ship or two might be 6 weeks later than scheduled or they heard that Elders had "bought up big" and was going to sit until the price went up. What usually happened was that Farmers bought because they needed it, and the price didn't alter too much. What I am trying to say is that it was all a ploy (and a ligitimate one) to sell more Fertiliser.

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So when we say "Buy now because there may not be a later", we are basing this on what we see and hear daily. This is telling us it is harder (yes harder than two weeks ago) to find Hay stocks to satisfy the demand we are experiencing and buyers are getting frustrated.

There have been some good rains in NSW and Queensland that will help quell demand but alot of these areas are getting their first rain, and we all know it doesn't rain grass. Southern areas are extremely dry, and most of the higher rainfall areas in the South are starting to get cold, and any growth associated with a rain is going to be limited now. Most have resigned to the fact that the Winter is going to be tough and they will require Stockfeed

Many of the Farmers that have Livestock and might have had some Hay out in the marketplace have taken it off the market as they don't want to face the prospect of buying Hay or Grain back in. This has taken alot of Hay out of the market. If it rained now would it return? Some would but only in very carefully executed smaller lots.

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We go around the grounds to see what our Farm Tender Salespeople have to say:
Shane Ruyg - Vic Mallee based
Shane said - Hay supplies running short with good enquiries and sales over the past couple of weeks. With weather conditions changing in certain areas like NSW & QLD, it is still very dry in other parts that have missed out. For those that require future feed, it would be best if you lock in what you require if it doesn't rain as Hay will be of short demand by mid-year.

Bonnie Kenner - North East Vic based
Bonnie said - Hay is moving very quickly at the moment with good quality cereal Hay getting snapped up not long after being listed. The volume of enquiry is increasing again, and buyers are now travelling further and further to source hay at reasonable prices. It is getting more difficult to find large parcels however there are several smaller parcels popping up mostly throughout Victoria that are keeping things ticking over for now.

Mike Pickard - Southern Queensland based
Mike said - Not alot to Report except there is not alot out there and what is, is gold plated. Hay inquiries quietened down in Northern NSW/Qld because of the rain and cost factor. Freight is a concern for many. If Farmers are buying Hay, they are only using it on the most valuable Stock, re Stud Stock.

Paul Grayling - Northern Vic based
Paul said - We are starting to see some real pressure in the Hay Market with a lack of Cereal Hay and other cheaper lines such as Canola. We knew this was coming but not being Winter quite yet will definitely put more pressure on without some rain in the near distant future. Straw is another option for most, and we are moving some parcels, Corn Stubble is a viable option that has "a bad rap" in my opinion with some Feed tests indicating that it is a better option than Cereal Straw, it also seems to be more palatable. Bottom Line is if you need Hay act quickly as it won't last long, the same with Straw and all other feed options.

Here are some of the quotes from the last fortnight of sales:
Cereal Hay levelled out in the last fortnight, with prices making up to the high $300's. Canola Hay stayed pretty level and traded similar to Cereal Hay

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Prices for Lucerne, Vetch and Clover jumped in the last fortnight, prices for good testing and high Bale weighed lots were trading in the mid $400 range

Straw is very much on the radar with buyers. Cereal Straw bale weight can be alot lower than Cereal Hay and cost of freighting light bales around means that Straw is more a localised product and has smaller shifts in price. Price for the last two weeks stayed about the same and ranged from $110-150/mt.

Dwain Duxson - Farm Tender

We have just added the Australian Fodder Industry Association or AFIA as a Prime Preferred Partner, and we are looking to help grow the membership base of this organisation. Please take a look at their page and consider becoming a member. For more info click here or ring the CEO John McKew on 0438 182 600

We are getting lots of Hay buyers using DelayPay. We offer 6-month terms to approved buyers with no security. You can use DelayPay for any sort of Ag purchases and it takes only 24-48 hours to apply for a credit limit. For more info Call Dwain Duxson on 0427 011 900 Kelsey Miller 0409 117 730

The next report will be in two weeks. Cereal Straw bale weight can be alot lower than Cereal Hay and cost of freighting light bales around means that Staw is more a localised product and has smaller shifts in price. Price for the last two weeks stayed about the same

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

Bonnie Kenner - 0488 789 012 or bonniek@farmtender.com.au

Or 1300 Farming (1300 327 646)

www.farmtender.com.au

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