THE confidence of dairy farmers is improving.
Milk prices have improved substantially since the season opening prices of last year. Dairy commentators are predicting that milk prices will close the season up to 30 per cent higher than they opened.
Hay prices are now at their lowest since the peak in June. The price of pasture and cereal hay has fallen by more than $100 a tonne, or 45 per cent, over this time. Similarly, feed barley prices have eased about $70 a tonne or 30 per cent in the same period.
These factors have given much-needed confidence to dairy farmers and those in southwest Victoria are now buying dry cow hay. With many cows dried off waiting for calving, lower energy and protein hay has been bought to maintain their condition. Supplies of silage on many of these farms are now low and traditional supplementary purchases are underway.
Rolls of pasture hay from around Penshurst have been sold into dairy farms at Allansford and Timboon for $135 a tonne delivered. According to southwest hay producers, most of the good-quality hay has been sold and delivered to customers.
Despite this, there are some parcels of pasture hay with protein as high as 20 per cent still for sale.
Rainfall figures for the first three months of the year show that southeast Australia has received above-average falls. This is particularly the case in the Goulburn and Murray Valleys and the NSW Riverina. One exception is the area west of Hamilton, which still reflects a drier summer than elsewhere.
Much of southern Victoria is already green following rain last month. Over the next five days 25-50mm of rain is forecast in most Victorian areas.
This April rain will set things up for a good autumn break.
The ongoing nature of this rain will determine the price direction for the hay market.
