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Thursday, May 24, 2018

Buyers frustrated at dwindling Hay stock levels.

By Farm Tender & Olivia Agar  |  Source: Farm Tender

The Hay game has changed so much. At the starting point of the "frenzy" back at the end of January, there was ten parcels of Hay for every producer looking to buy, today it would be ten producers fighting it out for a single parcel, that's how it's changed.

Supply has now shifted to Southern and Western Victoria, and the Mid North of South Australia. However, stocks are already getting hard to find in these areas.

Much of the Hay you see on the road today was booked up long ago. Whether procrastination or hesitation, anyone that didn’t make a move a few weeks ago would be surely sorry now.

It’s not hard to pick why we’re seeing such hefty demand and low stocks this season. Apart from the irrigation, there is no feed anywhere in NSW and the crops are struggling to come through.

We heard an interesting scenario from a Cattle Breeder who has recently budgeted $500 for Hay per Cow and Calf unit, it's a hefty budget, but he said it would be worthwhile if he manages to keep those bloodlines he has built up over several years. That's what the genetics means to his business.

It's like sport, there are winners and losers, the winners have celebrated selling the Hay they never imagined they would and gained valuable cash flow. 

Prices for cereal Hay, both old and new season, went up $10-$20 in the last fortnight, while there were only slight rises for Vetch Hay. Prices in the Riverina are hard to come by because there is little or no Hay to sell.  

 Table 1 summarises hay prices over the period 9th of May to the 23rd of May 2018. The following explains the terminology used in the table:

  • Prices are $ + GST per Metric Tonne - $/mt
  • NS – New Season
  • OS – Old Season
  • 20/10/40/650 - Protein/ME/NDF/Bale weight
  • Shedded – Shedded
  • Cap/Tarp – Capped and or Tarped
  • Paddock – Paddock

Mecardo information is provided to assist in your marketing decisions. It contains a range of data and views on the current market. It is not intended to constitute advice for a specific purpose. Before taking any action in relation to information contained within this report, you should seek advice from a qualified professional. The information is obtained from a variety of sources and neither Mecardo nor Ag Concepts Advisory will be held liable for any loss or damage whatsoever that may arise from the use of information or for any error or mis-statement contained in this report. 


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