The Australian Fodder Industry Association says the short term consumption of fodder has increased in regions where flooding has occurred.
Those affected still have access to their on-farm supplies although some cannot access stacks or pits and have been forced to buy in hay for their short-term needs.
Farmers have reported that pasture quality for coastal dairies is falling and increasing volumes of home grown fodder is being fed to cows.
The AFIA said more trading activity will begin as we enter autumn, with the timing of the autumn break dictating how long this continues for and how prices are affected.
Straw is now being baled in southern grain growing districts, according to the AFIA.
Availability will be quite variable across the country and is determined by the portion stained from rain that fell post harvest. Straw availability will be limited in Western Australia, the central west of NSW and southern Queensland.
Irrigated lucerne crops are into their third and fourth cuts with good curing conditions in SE Australia providing an opportunity for high quality hay. Trading activity is increasing in eastern states as buyers who typically rely on outsourced fodder, are being proactive about shoring up their supplies for their summer and autumn needs.
The AFIA said the pressure on cereal hay prices remains in all southern Australia regions exacerbated by reduced volumes of hay cut in 2011. Vetch and cereal hay is in limited supply in the eastern states but the quality is very good.
Vetch, which is popular in south eastern states dairies as a protein source, is also in limited supply. There were reduced sowings in the Mallee and Wimmera regions of Victoria and a large percentage of crops that were sown have been ploughed in for green manuring.
The AFIA expects a lift in lucerne hay production, given increased plantings during the autumn and spring as well as good water availability in all irrigation districts.
However, hay is being exported to Japan for the first time which will influence demand, especially with less expected to flow from the US.
The AFIA said buying opportunities in the paddock are over for winter crop hay types. However, as third and fourth cuts of lucerne come into play, it expects there will be fresh opportunities to purchase directly out of the paddock where the seller is generally more open to negotiation.
