Hay Prices Normalize as Feed Grain Market Remains Uneven
Hay and silage season is in full swing, and the market has undergone significant changes compared to this time last year. According to Mecardo.com.au, hay prices have returned to a normal range for much of the past year, after peaking due to low production and dry springs in key cattle areas.
Last year's hay market was marked by a severe shortage, with expensive fodder being shipped from Western Australia. However, this led to increased production in subsequent seasons, resulting in prices returning to around normal levels over the last 12 months. In fact, hay prices have seen a small rally in NSW due to a dry autumn, while the south has experienced a decline, with pasture hay price midpoints in south-west Victoria now sitting at $205/t.
Feed grain prices, on the other hand, are experiencing a more complex market situation. The north remains affected by a tighter harvest and high freight costs, keeping feed grain prices at a premium to southern values. However, as harvest approaches, this gap is expected to narrow.