Thursday, July 7, 2022

State-By-State Hay Summary

Colorado—In the June 30 report, compared to last report, trade activity moderate on very good demand for horse hay and retail markets. Trade activity moderate on very good demand for feedlot and ranch hay markets. Bid prices to growers on new crop first cutting alfalfa are reaching levels of $230-$250 delivered. Grain hay prices are upwards of $30 per ton over what the market ended up at last year. Irrigation water restrictions and lower yields have largely contributed to the recent hay market prices. Early monsoon weather in the San Luis Valley will produce some rain damaged first cutting alfalfa hay, which growers normally see during second cutting. According to the U.S. Drought Monitor’s High Plains Summary for June 28, severe and extreme drought expanded across northeast and central Colorado. In southern Colorado, an early and active North American Monsoon has delivered heavy enough rainfall to cut into short- and long-term deficits, leading to widespread improvement of drought conditions in the southwestern part of the state. According to the NASS Colorado Crop Progress Report for the week ending June 26, first cutting alfalfa harvested is 67 percent. Stored feed supplies were rated 5 percent very short, 24 percent short, and 71 percent adequate.

Missouri—In the June 30 report, compared to last report, hay movement is moderate to good as most farmers are seeing lower yields than long term averages and are looking to buy hay now and make sure their needs are filled especially with fears that the dry weather might continue. On the good side rain free weather has allowed hay harvest to continue mostly uninterrupted. On the bad side rain free weather has really begin to show as grass is burning and stopped growing in much of the state. Over sixty percent of the state is showing on the latest drought monitor with near ten percent of the state moving in to D1 drought status. Nearly all of the state south of I-70 is currently highlighted as abnormally or moderately dry now. Hay prices are steady to firm, supply and demand are moderate. Fescue seed harvest is winding down. Some buying stations have already closed and many other are saying they will likely close after the weekend. Record high prices early in the season and a good crop had many stations saying they had more seed delivered than what they have seen for several years. Prices have dropped as we are on the down side of harvest now. Several operators parked combines once price dropped late last week. Many said they had already got their best seed and high fuel prices wasn’t worth cutting more once the seed price dropped. Prices are currently 0.68 to 0.70 cents per lb.  

Nebraska—In the June 30 report, compared to last week, baled hay, alfalfa pellets and ground alfalfa sold steady to $10 higher. Dry conditions continue around the state and hay stocks continue to diminish. First cutting is wrapping up and selling, while many producers are moving on to their second cutting. Good to very good intra- and interstate demand.

Oklahoma—In the July 1 report, compared to the last report, hay being traded is slow to steady in most of the state. The bales that are being traded are either large amounts at once or being contracted. Compared to trading loads at a time throughout the year as needed. As we look at prices still no true market trend for all types of hay. The number of hay bales being produced is less compared to last year’s hay market. Parts of the state are needing moisture again to help with production to try and make up for the shortage along with the drought conditions. According to Oklahoma Mesonet Drought Monitor, our current condition in the western part of Oklahoma is in a moderate to extreme drought yet, Cimarron County is in exceptional drought. From central to eastern Oklahoma is in none to abnormally drought conditions. Next report will be released July 15.

Texas—In the June 24 report, compared to the last report, hay prices remain mostly firm to $10 higher in all regions. Hay demand remains good. Hay supplies are shortening in most regions. Hotter than average temperatures and high winds have impacted yields, leaving first cutting yields shorter than prior years. Pasture conditions are primarily in poor to very poor condition with short soil moisture levels. As a result, supplemental livestock feeding is continuing even through the summer months. This is putting further demand on hay production on tightening hay supplies. Next report will be released July 8.

New Mexico—In the July 1 report, compared to last week, alfalfa hay prices steady. Trade very active, demand very good. The southern and eastern part of the state are in their third cutting. In the north central part of the state, field work is at a standstill due to heavy rain. Monsoon rain has provided relief across the southwest, after months of extremely dry conditions.

South Dakota—In the July 1 report, compared to last week, alfalfa and grass hay firm. Very good demand for high testing, old crop, dairy quality hay as the first cutting was delayed much later than normal resulting in hay that is lower testing in Relative Feed Value. Supplies of dairy quality hay is limited but dairy producers aren’t chasing the market either. Very good demand for grass hay. Hot, windy and dry conditions this week hampering the growth of second cutting alfalfa. Drought conditions remain in West River area.

Wyoming—In the June 30 report, compared to last week, the light test of baled hay traded steady to slightly firm. Asking price of alfalfa cubes steady to $30 higher per ton and asking price for 15% sun-cured pellets remained steady. Demand and buyer inquiry was good to very good.

Montana—In the June 24 report, compared to two weeks ago, hay sold generally steady. Demand for hay was light to moderate. Old crop hay sales continue to occur but on an as need basis. It remains very dry in north-central Montana and across the front slope. Buyers continue to search for hay to make it to first cutting. Many producers are starting to cut first cutting in the central portions of the state, while eastern and southern Montana has some hay already in the bale. Several producers report rains have destroyed quality for hay in Washington and Idaho and have buyers looking into Montana for high quality first cutting or old crop 3rd. Several sales of hay were destined for western states this week. Discussions of new crop hay contracts continue as two camps are establishing positions: Eastern and southern Montana producers are more proactive in trying to establish the hay market as rains have helped produce what many see as a bumper crop, while central and western Montana are more reserved as they see dry conditions across the front slope and highline along with very good demand from western states as beneficial to hay prices. Next report will be released July 8.




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