2024 Hay Market Insights and Trends: a discussion with National Sales Manager Dave Clothier

Episode Highlights:

• Australia has experienced above-average rainfall across Eastern Australia, affecting hay demand.
• The unexpected shift from El Niño predictions to increased rainfall has led to a reversal in livestock unloading, now increasing demand and prices for livestock.
• Demand for hay has tapered off over the past 6-8 weeks, but seasonal demand is expected to rise again from March through June.
• Approximately 25-30% of hay has been compromised by being paddock stacked and rain-damaged making it less desirable compared to shedded hay.
• Graziers are preparing to stock up for winter, given the long wait for new season hay in October.
• Graziers are prioritising quality hay, and are willing to pay more to avoid the risks associated with rain-damaged fodder.
• The importance of high quality hay becomes paramount in the cooler months, with aroma and colour also crucial for weaning livestock.
• Market dynamics suggest that the price for cereal hays may decrease slightly, but transportation costs from distant locations could offset any savings.
• The export market of oaten hay is putting a solid floor in that market, especially in Southern States.
• Bale weight significantly impacts the cost-effectiveness of hay transportation, with heavier bales preferred to offset transport costs.
• The feedlot sector faces challenges with high commodity prices, affecting cash flow and operational margins.