High Demand Challenges Supply: a Market Update with Dave Clothier

Podcast Highlights In this episode of Hay Matters, brought to you by LocalAg and Feed Central, Jon Paul Driver is joined by National Sales Manager Dave Clothier to unpack current fodder market conditions. With drought in the south driving record demand and pushing prices up fast, Dave explains what’s moving across the country and what’s not — and what buyers and sellers need to know as an early northern season begins to take shape.April and May marked one of the busiest trading periods Feed Central has seen in over 20 years, as drought across southern NSW, Victoria and SA pushed up demandMany southern growers held onto hay, concerned the dry conditions would extend north, which further tightened supply during a period of rapidly increasing demandRain has restored some confidence but feed shortages are expected to continue for six to eight weeks while pasture growth catches upWhile Western Australia and Northern Territory have good supply, biosecurity restrictions and high freight costs are limiting movement eastPrices are sitting above $400 ex farm for cereal hay and $600 for lucerne, with freight adding up to $350 per tonne and some landed prices topping $700In some cases straw is being transported long distances to fill gaps in southern supply and buyers are feeding at any cost to retain core breeding herdsNorthern Australia is set for an early season with cereal hay cuts expected from mid July while southern crops remain four to six weeks behindWith the new financial year underway, more growers are releasing hay to the market but windows are narrow and buyers should act quicklyPrice pressure is expected to remain until southern yield prospects become clearer