Market Update: The Hay Market Has Come Off the Boil

There have been some big changes across the hay industry over the past week, and if you buy or sell hay, they are worth understanding.

The short version: the market has softened. I will be bold enough to put a number on it. Prices have come back off the boil by around $40 a tonne compared with where we sat about ten days ago. How much further it eases is hard to say, and we will not get ahead of ourselves, but that is the picture right now.

What is driving the change

This is not one thing. It is a handful of factors all pulling in the same direction at once:

• Rain up the east coast and into central New South Wales. It is wonderful to see, and we love rain. It is putting green feed in the paddocks and giving producers hope they can carry more condition on the stock they have held.
• Sowing is underway. With seed going in the ground, the feed outlook is shifting.
• Fuel prices and supply. Fuel costs and ongoing supply problems continue to flow through the whole chain.
• Exporters stepping in. Now that the market has eased, exporters have decided they want a share too. They are putting prices into the market and taking some volume away from the domestic side.
• Strong livestock prices. Firm sheep and cattle prices have driven a big reduction in herd size, which is showing up in the saleyard numbers. That feeds straight back into softer hay demand.

So to be clear, this is not Feed Central or Local Ag dropping the market. It is a broad softening across the board, driven by all of the above.

What it means for you

Here is the take-home message.

There is still plenty of good quality product available, and we are not going to run out. We have good quality cereal hay and good quality protein hay, all tested and backed by quality statements.

Protein hay in particular is the sought after product at this time of year. In the cold months, stock love a bit of protein in the belly to keep them warm and keep the weight gain coming on.

Our team is right across these lines of hay. We can help you source the right product, get it on the right truck, and get it delivered. Everything is backed by our website, where you will find the quality statements, vendor declarations, and full detail to browse for yourself before you buy.

A word of caution. Rain is wonderful and it does put green feed in the paddocks, but it does not put hay in the shed. You still need feed for winter. Now is the time to assess what you will need. You have likely got some prized livestock to carry through, so work out your requirements while the product is here.

Then talk to us. We are only a phone call away.

All of these factors are out of our control. But there is one given: cows eat 365 days a year, and they all love a full belly when it is cold. Give Local Ag a call and we will help you out.