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.