The Farm Tender Hay Report – Hay demand dries up

By: "Farm Tender" News
Water & Irrigation News
Feb 11, 2020
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Hay demand dries up

For the fortnight up to the 11th of February 2020.

This article is bought to you by #FarmTender2020.

This time last fortnight we were still talking there being "robust demand" for Hay. Well how things have changed, since last week, demand has literally fallen off the cliff.

Of course, the reason for the sudden change is trading conditions is due to the rain event that's happening up and down the Eastern States.

Buyers were saying, "why should I buy any excess Hay if we aren't going to need it". Or, "let's just wait and see what happens". However, it's still only February, and a lot can change between now and the Winter months.

But the fact of the matter is that some won't need to buy any Fodder again for some time, and good luck to them. But a select few missed out, and hopefully, their turn is not too far away.

#FarmTender2020 - Focus on Farming Systems - June 5th, Bendigo, Vic

If this is the end of the drought then it's been a two year period whereby demand has far outstripped supply. When you look at it, we went through two full seasons worth of Hay in 2018 and another season and a half's worth in 2019. So that's roughly three and half-season worth of Hay between the end of January 2018 and the end of January 2020. In that time it has been a one-sided market favouring sellers, carriers and intermediaries (like ourselves).

Our records are telling us that on January 25th, 2018, the buying frenzy officially started.

Interestingly the focus has shifted to Seed of all types.

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

With limited sales of Cereal Hay, we feel the price is in the range of $250/mt-$300/mt ex Wimmera right now. The better values are being paid for Shedded Hay

We have sold a few parcels of Pasture Hay for between $220/mt-$245/mt in the last fortnight.

Vetch Hay is still something buyers are on the lookout for and prices are in the $350/mt-$400/mt range.

#FarmTender2020 - Focus on Farming Systems - June 5th, Bendigo, Vic

There seems to be quite a bit of Straw around with Farmers desperate to get it out of paddocks they intend to sow/seed. The market seems to be in the $90/mt to $110/mt range with limited demand.

To make sales now you need to be in the lower end of the above-mentioned ranges. Let's just see the mud dry (as opposed to the dust settle), and see what happens in the next fortnight.

We go around the grounds to see what our Farm Tender Sales people have to say:

Shane Ruyg - Queensland based

Shane said - Welcomed widespread rain in QLD and NSW has definitely seen the feed market slow with more sellers than buyers currently. This is a stark contrast compared with the last few years. With the colder months nearing, I think you will see the Hay job kick again with Protein Hay likely to be popular and good Cereal Hay. There is still a lot of straw out in paddocks at present with sellers keen to move before the sowing/seeding season starts.

Paul Grayling - Mallee Vic based

Paul said - Paul is on leave and unavailable for comment.

#FarmTender2020 - Focus on Farming Systems - June 5th, Bendigo, Vic

Bonnie Kenner - North East Vic based

Bonnie said - The Hay market has slowed down considerably in the last fortnight, following on from high rainfalls in parts of the Eastern states. Many buyers are holding off at the moment, either waiting to see what sort of follow up rain they get or already starting to utilise some feed on the ground. As a result, on limited sales, Hay prices have remained firm, whereas in previous weeks we had been seeing a steady increase. Straw prices are slightly cheaper.

Mike Pickard - Southern Queensland based
Mike said - Inquiry for Hay is dead at present with some good rain across southern Queensland and North Eastern New South Wales. Farmers are concentrating on forage crops with high demand for Seed. As we start getting into the cooler months, we envisage demand picking up again. Straw pricing has come back up to $10/mt.

Catch you in a fortnight

Dwain Duxson - Farm Tender & DelayPay

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)

Need to buy something? Try DelayPay

Get payment terms for buyers and payment security for sellers - www.delaypay.com.au. If you are keen to know more ring Dwain 0427 011 900 or Kelsey 0409 117 730

#FarmTender2020 - Focus on Farming Systems - June 5th, Bendigo, Vic

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