Seasonal Update
The fodder market has been very responsive to the recent rainfalls occurring in many regions around the country over the last few weeks; demand has quickly softened. Patchy rain has fallen in the Goulburn Valley recently, but it is inconsistent; Echuca for example is still dry. However, rain has helped some lucerne growers in the region, with many getting ready for their last cut.
Figure 1. BOM 8-Day Rainfall Forecast
Figure 2. Farm Online Maps Precipitation Outlook
Trading and Marketing
New season hay has moved fast with many farmers in the region now sold out of cereal hay. A lot of the hay on the market is now lower grade. General demand in the region has now stagnated with the market in a hiatus.
A lot of lucerne in the region is being made into small squares. It is reported that there are still very good supplies of straw in the system, especially out of VIC. As a result, we have seen softening of straw prices this week across several regions.
The recent rainfall in the struggling area has triggered a softened demand for hay/fodder. In some cases, we are now hearing hay loads previously purchased/committed to but not yet delivered, wanting to be cancelled. Straw sellers are asking for $90 to $100 a tonne ex-farm in the Western District and values are $10 higher in the Wimmera, and $20 higher in the Mallee.
Prices
Figure 3. Cereal Hay Values into the Goulburn Valley
Prices have eased in the region recently with no notable changes since last week:
- Cereal hay: -$5 ($290-$350/t), range narrowed.
- Lucerne hay: -$165 ($550-$600/t), very little trade occurring.
- Straw: -$55 ($120-$140/t)
- Pasture hay: +/-0 ($360-$390/t), remains steady but minimal trade occurring.
Pictures of New Season Crops
Hay: Oaten Hay LPRD (Low Premium Rain Damaged)
Specifications: Crunching Soft, visible spotting & stain, sweet & fresh aroma, 0.01% Barley Grass, JC3-4 colour (55-70% Green) and stem size (<5-6mm)
Location: Bendigo, VIC 3552
Sources: Bureau of Meteorology, Elders Weather, Dairy Australia, WX Maps, Lachstock Research, Weekly Times, Grain Central, Mecardo Expert Market Analysis & Feed Central, Wingara AG Limited.
By Katie Lindkvist, Wingara AG.