The Farm Tender Hay Report – It's a complex Hay Market right now
- By: "Farm Tender" News
- Water & Irrigation News
- Jan 02, 2020
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It's a complex Hay Market right now
For the fortnight up to the 3rd of January, 2020
This article is bought to you by C Pearce Contracting.
Firstly, we have recognised the drought in NSW and Qld over the last 2 years, and now we are in the midst of a separate disaster. In areas, more to the North of the Eastern Seaboard fires have been burning for months and now the problem has moved to the South East of the Country. Our best wishes go out to anyone affected. Stay safe.
These fires have added a whole new level of complexity to the Hay job.
Hay is needed immediately in many fire-affected areas, so much so that lauded Hay run organisers the Burrumbuttock Hay Runners have organised 54 Truck loads of Hay to be despatched to the burnt areas East of Albury/Wodonga today. Some of this Hay was bound for the New England Hay run later in the month. All this was put together in the last 24-48 hours, what an effort. There are also many other people and organisations doing a wide range of things to help people in need right across the country. Well done to everyone involved in these trying times.
Demand over the Christmas/New Year period has caught us a bit unaware, as staff take time off to recharge the batteries in what will be some busy months ahead.
Australian Fodder Industry Association (AFIA) CEO John McKew reported in Farm Online last week that Hay supplies might dry up as early as March. Since that interview we have has further widespread fires in Southern NSW and Victoria and the next couple of days look ominous for the South East of the Country.
Our take on it is that we know there are stocks in Sheds across areas of the Mallee, Wimmera, SESA, other parts of SA and Southern Victoria, just how much is anyones guess. Straw has, and will take some of the pressure off the supply situation.
In Victoria, there are allocated Road Train routes stemming down from the North West, the VFF (Victorian Farmers Federation) is concerned that some operators are going off route and this could jeopardise the whole program. Take a look at the media release the VFF has sent out here - VFF says non-compliance will threaten the future of the drought Road Train network.
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What's happened to Hay prices over the last fortnight?
Cereal Hay price lifted slightly in the last fortnight and are now consistently hovering around the $250/mt mark. We would not be surprised to see prices lift further, however, we are not predicting a big lift.
Vetch Hay lifted $20/mt in the last fortnight to around $320/mt ex Farm Wimmera. There are reports of Vetch supplies becoming tighter
Canola Hay prices stayed steady at around $250-$255/mt.
We are seeing a lot more interest in Rolls, which seems to be earlier than usual.
Retail and Produce Stores are starting to do plenty of business, due to the combination of drought and fire. Several Hay traders are focussed on selling into these stores, and they too are run off their feet.
We go around the grounds to see what our Farm Tender Sales people have to say:
Shane Ruyg - Vic Mallee based
Shane said - The Hay/Straw job does not seem to be slowing down with demand still very strong from NSW and Qld buyers with a lot going into fire-affected areas of NSW. There is not a lot of Hay left on the website atm, but we are hoping now that Harvest is just about finished that we will see some more come onto the market. There will be plenty of straw, and there is still a lot being baled currently, so this may be the saving grace if we do run out of Hay early.
Paul Grayling - Northern Vic based
Paul said - We have seen a bit of a "Dry up" on the supply side of the job with the majority of Vetch Hay either gone or sold awaiting pick up. Cereals are getting tighter as well. Some sellers have been waiting to see where the price gets too, but I personally believe that the ceiling won't be that high this year. There is plenty of Straw about and will be well utilised with buffers and protein spikes.Mike Pickard - Southern Queensland based
Mike said - We've had some buying of Straw and Hay from Feedlots in Northern NSW and Qld over the Christmas/New Year period, they have secured parcels of between 300/mt and 1000/mt. The inquiry will increase as the heat and dry continues. Demand will increase also for those unfortunately affected by fires.
Mike said - We've had some buying of Straw and Hay from Feedlots in Northern NSW and Qld over the Christmas/New Year period, they have secured parcels of between 300/mt and 1000/mt. The inquiry will increase as the heat and dry continues. Demand will increase also for those unfortunately affected by fires.
Bonnie Kenner - North East Vic based
Bonnie said - As expected there is a lot of Straw being sold currently, it's proving to be a good option at the moment with good quality bales selling at reasonable prices. There are a number of lots that are weighing up pretty well, which is great for the distance buyers. While the Christmas period held things up momentarily, Hay sales and enquiries are back in full swing and this looks to continue well into the New Year. Catch you in a fortnight
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)
DelayPay is for both Buyers and Sellers
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
C Pearce Contracting.
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