Mar 24, 2023

Basis Commodities – Australian Hay Update – Friday 24th March 2023

Australian growers planting intentions are usually made by the national holiday of Anzac Day which falls on the 25th of April each year. This date is seen as important as the cropping area will already have seen summer rainfall providing subsoil moisture and the long term weather forecast will already be understood to support crop growth. The Australian Bureau of Meteorology has suggested that La Nina has finished which would lead to drier conditions over the next three to six months during the winter cropping period. Less rain is typically positive for high quality hay. While the yields will be lower, the quality will be higher.

During the two main years of covid, container freight rates in some cases were five times the standard cost, making it prohibitive for the export of Australian Oaten Hay into the Middle East and African markets. The beginning of 2023 has been marked by deliveries of newbuilds of mega-container ships to liner operators. Evergreen has 49 vessels of 463,442 TEU under construction whereas MSC, the market leader, has an orderbook of 133 ships with a total 1.8m TEU. Other ocean liners such as COSCO and CMA CGM have orderbooks of 884,772 TEU and 816, 476 TEU respectively. This situation is providing a positive outlook for competitive ocean freight transport for Australian agricultural products into the Middle East and African markets and we expect that by new crop (October 2023 onwards) that rates will be competitive once again.

It is believed by some nutritionists that Oaten Hay is a substitute for Alfalfa (Lucerne Hay) as a fodder replacement. This is not always the case as Oaten Hay and Alfalfa are able to complement each other within a total mixed ration. With the appropriate ratios of the two fodder types, they are able to work together to provide a greater impact on the diet of milking cows as well as dry cows to improve milk fat production. Basis Commodities has worked with dairy nutritionists and the technical team of our key supplier BALCO Australia to incorporate both fodders in the dairy TMR and demonstrate positive results.

While the 2022/23 season Oaten Hay production did not provide significant quality surplus, there are still shipments heading to the Middle East for regular customers. Working in conjunction with our partners, Basis Commodities is able to provide samples of current season quality hay that can be used as an indicator for the upcoming season. We are confident that with improved freight rates and a dryer growing season, there will be a greater exportable surplus of quality Oaten Hay for the 2023/24 season.

Importers are encouraged to speak to Basis Commodities about their requirements so a quality profile can be created to provide deliveries without disruption, in conjunction with our key supplier BALCO Australia.

Please contact Nader Hassan or Steven Foote, who are available to support any fodder needs for the season.

Steven Foote
Sydney, Australia
M: 0408 308 908
E: steven@basiscommodities.com

Nader Hassan
Dubai, UAE
M: +971566915688
E: nader@basiscommodities.com

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The post Basis Commodities – Australian Hay Update – Friday 24th March 2023 appeared first on Basis Commodities.

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Australian Hay Update – Monday 29th April 2024

29 Apr, 2024

The 2024/25 season for Australian Oaten Hay has started with sowing well underway for all growing areas. The initial expectation for the upcoming year is much the same as the current season where we saw a significant increase in acreage planted and a higher than average quality profile. With the return to normal freight rates despite the international pressures and an Australian Dollar that has been well below the 0.700 cent handle for much of the past 12 months, there has never been a better time for exporters of Australian Oaten Hay to develop new markets. Growth in interest has been seen from the Middle Eastern markets with the integration of Oaten Hay to the ration alongside alfalfa with excellent results forthcoming. As part of the Basis Commodities service offering, we like to share our insights and knowledge on our products to better support our customers. Please enjoy this report on the various considerations for Oaten Hay during the growing stage as well as our future reports in the coming months as we head towards new crop which is due for export in October/November 2024. Australian Oaten Hay: Despite the concerns with a drier season for cereal crops, less moisture, particularly at the end of the hay growing season produces a far better product to suit the dairy and livestock industries. In this month’s report, we will explain the reasons why less rainfall can actually benefit an oaten hay crop. Fibre Length and Thickness: Too much moisture during the growth cycle of an oaten hay crop will produce thicker stems and longer fibre lengths which reduces the feed test value. This is due to the nutrients of the plant being spread across a larger fibre length diluting the high levels of water soluble carbohydrates (sugar content important for palatability) and increasing the acid and neutral detergent fibres leading towards poor fibre digestion and absorption rates Lodging: Lodging is defined as the permanent displacement of a stem from a vertical posture. It is often caused by high wind speeds, made worse by wet conditions. It can happen quickly or relatively slowly, with stems initially leaning, then falling under the pressure. If too much water is received on an oaten hay crop, the plant may grow beyond a stable position and fall over. This is because the root system of the plant has not penetrated deeply enough through the soil as it has not had to search too far for moisture. The plant falls and then regrows which renders the crop unusable due to soil contamination.

Basis Commodities expands service offering to soybeans.

18 Apr, 2024

In late 2023, Basis Commodities successfully executed its first shipment of premium non genetically modified soybeans from Romania to Egypt, via two small vessels. Basis has many years of experience managing trade flows and relationships within the Middle East and we were pleased when the opportunity to add a new product – Soybeans – arose out of discussions with our suppliers in Romania and buyers in Egypt. To ensure the safe arrival of the produce, the company worked with several parties to facilitate the execution of this new flow for the company including managing due diligence, testing, insurance and contract execution. Soybeans are a primary source of protein and edible oil, making them essential for human nutrition. The largest producers of soybeans in the world are the United States, Brazil, and Argentina. These countries account for most of the global soybean production. Ukraine is the leading exporter of soybeans in Europe. However, Romania is seeing growth in this market after a long hiatus. This growth can be attributed to various factors including increased demand for soybeans globally, improvements in agricultural technology, and favourable climatic conditions for soybean cultivation in Romania. Egypt is among the top importers of soybeans in the world. The country imports large quantities of soybean, primarily for the production of soybean meal, a key ingredient in animal feed formulations. The country's growing population and expanding livestock sector contribute to the increasing demand for soybeans as a source of protein-rich feed. Basis Commodities General Manager in Dubai, Nader Ahmed said assisting companies making connections in the movement of soft commodities is a speciality of the company “we are committed to fostering international trade partnerships and promoting the exchange of quality agricultural products in the Middle East” and “We’re proud to have played a role in bringing premium soybeans into Egypts market”. For more information on how Basis Commodities and assist your business, reach out to the team on the details below