INCREASED traffic of hay trucks and speculation among merchants have breathed new life into what has been a subdued hay market.
Some renewed interest has been found by dairy and beef farmers in northern Victoria since early this month.
All qualities of hay have been moving.
Buyers are determining hay value according to quality.
Our tables reflect a cereal-hay market of $85-$115 a tonne on-farm between Natimuk and Sea Lake.
While there has been a steady flow of hay and straw to the NSW South Coast over summer, recent rain is expected to subdue this demand.
The Bega Valley received up to 100mm of rain over the weekend and similar rain has fallen across inland areas over the past 10 days.
This rain on the South Coast will give a good boost to summer pastures, including kikuyu, and slow demand for fodder from southern NSW and Victorian sellers.
Rain in southern Victoria has not been as extensive.
In the seven days to Monday morning dairying areas close to the Victorian Otways received 15-25mm.
Gippsland farmers generally received 20-45mm over the same period.
This flow of hay into the market may be short-lived.
In northern Victoria, dairy farmers have conserved large portions of their irrigation allocations rather than suffering the high evaporation rates associated with watering over the summer months.
Although irrigators in the Loddon and Campaspe systems have no allocation this season, allocations in the Goulburn and Murray systems are 58 and 63 per cent respectively.
The relatively mild summer temperatures and the recent rainfall have lead many irrigators to believe their soils were suited to sowing new-season pastures early. Soil temperatures are considered relatively low.
With their allocations up their sleeves, dairy farmers are expecting to sow in March and have high-protein ryegrass pastures available much earlier than normal.
This could place pressure on the high-protein hay market which has been one brighter portion of an otherwise dull market this season.
In southern Victoria, hay demand has been low due to the availability of silage.
Contractors reported plenty of silage during spring and early summer, but a lot was cut later than normal and quality is expected to be lower than ideal.
Hay demand is expected to rise when this silage supply dwindles.
Demand for small square bales from produce stores is noticeably lower this season.
Growers supplying these stores report a generous volume of lower-quality grass hay made into small bales, used to feed horses and other animals on the small farms on the urban fringe.
Small square bales of grass hay have been selling for as low as $4 per bale north of Bendigo.
