Despite the cold, wind and fog in southeast Australia it is becoming clear that the biomass of crops and pastures are well positioned for a promising harvest.

This is ideal for livestock producers who will fill their future fodder needs but there are questions over the potential demand for cash sales.

There is increasing pressure on hay growers to clear their sheds of old-crop hay to make space for new-crop hay which is shaping up to be a six to nine tonne a hectare yield.

Hay exporters are receiving calls from growers to sell hay late in the season but exporters are reluctant buyers.

Demand from the big four markets of Japan, South Korea, China and Taiwan remains challenging.

The largest market of Japan has seen its currency devalue by 47 per cent during the past five years while the South Korean Wan has dipped 20 per cent against the US dollar.

Given an influx of new suppliers in the Middle East, Spain has emerged as a major competitor in Asian markets.

Spanish exporters have overcome supply shortages and restricted market access to South Korea and hay exporters expect stiff competition from them this season.

The US is the largest hay exporter but has been suffering an over capacity of hay plants.

While they remain an expensive source of hay, according to hay exporters they are prepared to price match to maintain volume throughput.

Maintaining a consistent volume and quality of hay and straw to dairy and beef operations in north Asia can be difficult given the variable Australian climate and hay exporters have grown to manage the volatilities of supply and price.

At some expense, exporters increasingly carry over stocks of different grades from one season to the next.

This is tending to restrain prices paid by exporters each season.

Other than carryover stocks, exporters who operate plants across multiple states can utilise additional press capacity in one state to compensate for shortfalls in production in other states.

Any shortfall in hay production in WA could influence demand and price in other states.

This can work in favour of hay growers south of the Murrumbidgee River as the press capacity in Victoria has seen more expansion in the past seven years than any other state.

This season crops in SA and Victoria are in excellent shape and the northern wheatbelt of WA near New Norcia and Wongan Hills has seen a positive start to the season.

Hay growing regions between Northam and Brookton are sitting on a below average rainfall for the growing season to June and a 20 to 40 per cent rainfall for July.

If there is a shortfall in WA hay supplies, there could be some support for hay prices in eastern Australia however, WA hay exporters tend to carry over a higher portion of their demand each year.

Given the lacklustre export demand, the high yields and lower quality of hay this season are likely to drag export hay prices lower this spring.