The continued slide in hay costs was not surprising. Determine 1 exhibits that on the east coast, pasture hay costs at the moment are all the way down to a median of $355/t in south-west Victoria and $350/t in central-west NSW.
Cereal hay has held up higher, buying and selling at $450/t in south-west Victoria. Cereal hay typically trades at a premium to pasture hay, but it surely’s usually within the order of $30–50/t, not the $95 it at present stands at (Determine 2).
With hay season upon us, it will likely be fascinating to see if demand sparks as much as meet the oncoming provide. The slowing of the autumn in costs suggests it is perhaps.The dry end to September and begin of October has introduced the choice of chopping crops for hay sharply into focus. Croppers with good biomass however restricted soil moisture to complete crops may see $450/t for cereal hay as a greater choice than harvesting. Chopping, baling, and freighting to market are dearer than harvesting, but when the yield potential is dropping, it’s a viable choice.
Harvesting a 1t/ha wheat crop will solely ship $280–300/ha within the present market. If the crop has sufficient bulk to provide 2.5t/ha of hay at $400 ex-farm, this brings $1,000 of earnings. Clearly, the price of making hay and harvesting must be in contrast, however there are some compelling worth differentials to encourage chopping crops.
Grain markets look like on the transfer in response to drying circumstances. Native wheat values have gained some floor within the final week, regardless of additional falls in worldwide markets.
