Rain across much of southeastern Australia and carryover hay stocks have put a dampener on the upcoming fodder season.

Cereal hay prices have already dropped $50 a tonne in the past few weeks while full sheds and the promise of good supplies this spring and summer are further softening demand.

This is despite tightening seasonal conditions across northern NSW and southern and central Queensland, with some buyers venturing as far south as South Australia to secure supplies.

Australian Fodder Industry Association president Gavin Schuster from Freeling, South Australia, said hay supply this year would be “huge”.

“There is a lot of carry-over hay, and especially lower grades that are sitting in the paddock,” Mr Schuster said.

“There is hay selling and we ourselves are sending hay into central Queensland but that trade could stop in an instant if they get rain.”

Mr Schuster said there would not be enough shed space around this year for the planned fodder harvest.

“Sheds are full and there are thousands of tonnes of especially cereal hay left over, and there’s a lot of nervous people in the industry at the moment,” he said.

FeedCentral national sales manager David Clothier said soft hay demand was reflected in cereal fodder prices, which had slipped $50 a tonne to $200-$250 a tonne ex-farm in southern regions. He said there was also no inquiry for cereal hay which had not been shedded.

But Mr Clothier said large stocks of hay should be seen as positive, especially given predictions of a long, hot spring and summer ahead with El Nino. “If people have quality hay in a safe place (shed) and with all weather access, there is no need to panic about selling,” Mr Clothier said.

Hamilton hay contractor and farmer Sam Kele said he expected to make about half the number of bales he normally presses.

“Last year, we did about 13,000 round bales and this year we are predicting we will do about 6000,” Mr Kele said.

“There’s a lot of grass about and many people still have hay left from last year.” Mr Kele makes hay for others and for his own livestock but said he would likely buy this from others than bale his own feed.