Supply: Supply continues to drift further south, driven by the concentration of demand in the eastern half of New South Wales, particularly across the New England and Hunter regions. As a result, sourcing distances are increasing for buyers in these areas.
Pricing: Despite the added distance, delivered hay prices have remained largely stable over recent weeks. Two offsetting factors are at play: ex-farm prices are easing slightly as growers look to move product and clear shed space, while falling diesel prices are helping to absorb the higher freight costs. The net effect is that delivered prices are holding steady for now.
Weather & Market Activity: Recent rainfall events have quietened phone activity, with growers busy making the most of the conditions – planting, burning diesel, and building potential supply for the new season. This is a positive sign for the season ahead.
Looking Ahead – Buyers: With winter only days away, livestock nutritional requirements will rise as temperatures fall. Buyers are encouraged to research their livestock’s specific needs and use the filters built into the LocalAg platform to identify the right product. The LocalAg trading team is also on hand to help ensure you get the right outcome.
Looking Ahead – Sellers: If you need to move product urgently, work back from the delivered price into the demand zones to set a competitive ex-farm price. If you’re not under cash flow pressure, there’s merit in being patient, three months of cold weather lies ahead and feed demand will remain strong. Recent rain has also given many producers the confidence to hold onto their remaining livestock rather than reduce numbers, which means ongoing feed requirements across the country.
The Bottom Line There is good supply of hay in the market, it won’t run out anytime soon. But securing the right product at the best delivered price should be the priority, whether you need it this week or next month.
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