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Dairy Australia - Hay and Grain Prices

31 March 2014

Dairy Australia - Hay and Grain Prices - Week Ending 28 March 2014Dairy Australia - Hay and Grain Prices - Week Ending 28 March 2014

This report has been commissioned by Dairy Australia to provide an independent and timely assessment of grain and hay markets in each dairying region. It should be remembered that actual prices may vary for quality or other reasons. All prices are quoted are exclusive of GST.
Dairy Australia - Market News

International & National Summary - Grain:

  • There will not be a grain report this week, the next grain update will take place on Friday April 4th.

National Summary - Hay:

  • Welcome rain in Northern Australia this week could provide some relief to farmers when pasture growth takes off over the next 4-6 weeks.

  • Despite the rain demand for fodder is not expected ease over the coming weeks. For some buyers this rain will be too late as cooling ground temperatures could restrict pasture growth. Supplementary winter feed will be in demand in the coming weeks and months.

  • Rain has stopped fodder production in Northern Territory this week. A good fodder harvest is expected this year, once baling starts up again in the coming weeks. Fodder supplies in the Territory are short at present. A good harvest is needed, particularly for pellet mills and feedlots that are currently sourcing feed from Central South Australia.

Northern Australia:

  • Hay supplies remain tight and supplies are being sourced from Victoria and South Australia to meet demand. Feedlots are active buyers at present.

  • Due to good rain some growers should be able to plant their cereal crops for forage and/or fodder in the coming weeks.

  • Baling sorghum stubble and cereal straw as a cheap roughage source have ceased due to wet paddocks. Buyers will need to source cheap roughage from other regions until paddock feed becomes available.

Southern Australia:

  • Trading remains fairly steady this week. Demand is strong for high grade protein hay from dairy farmers and feed mills.

  • Protein hay will be short in 2014. Prices have lifted again this week with reports indicating that $280-300t on farm is the average price for lucerne hay not under contract.

  • Summer crop harvest is well underway in the irrigated regions of Northern Victoria and Southern NSW. There has been particular interest in cutting maize, millet and sorghum for silage this season.

  • There are good supplies of low grade cereal and pasture hay this year.

Western Australia:

  • Conditions remain hot and dry which has resulted in slightly increased demand for cereal hay on the domestic market.

  • There are good supplies of cereal hay from the 2013 harvest, however quality is variable.

  • Western Australia is still experiencing hot dry conditions. Lucerne hay supply is tight in WA and prices are now reported to be over $500/t delivered.

  • Straw supplies are well above average and quality is good. Demand for straw is steady, with particular interest from pellet mills due to the active live export market.

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