Northwest
Situation
Rain disrupted first cutting across the Northwest
and inventory of high quality hay is
limited. Rain-damaged hay abounds and prices
are weaker year over year.
Dairy demand for alfalfa is uncertain as record
volatility drives dairies to buy hay as needed.
Export demand remains favorable. However, shipping
container supply and ship sailings will
continue to be a challenge through the COVID-19
disruption.
In Montana, first cutting is underway
with few weather interruptions. Current alfalfa prices
per ton range from $75 for fair quality to $125
for premium quality hay; grass hay is selling
for $85-$125. Dry conditions in areas of Montana
and western North Dakota are causing a decline in dryland hay production and
may create an increased demand for hay left over from the previous year and new
crop for 2020.
First cutting alfalfa in Idaho was disrupted by rain.
Supreme hay continues to trade between
$180 and $200 per ton or around $1 per RFV point.
Good to premium prices range from
$140-$170 per ton, and fair quality prices range
from $120-$135 per ton. Prices for lower
quality hay are decreasing as supplies of rain-damaged
hay increase.
In the Washington-Oregon Columbia Basin, as much as half of first
cutting alfalfa and
timothy received some level of rain damage. Higher
quality alfalfa is trading around $200
per ton, while lower quality feeder hay is trading
at $140-$170 per ton. Prices are lower
than a year ago due to an abundant supply and
lower quality.
High quality timothy prices rallied after widespread
rain damage, trading between
$270 and $280 per ton. Lower quality is trading
in a large range between $160-$255
per ton depending on level of rain damage.
Demand in the Oregon-California Klamath Basin is favorable with tightening
supplies.
Premium alfalfa is trading around $200 per ton and
good quality hay is trading between $155
and $185 per ton.
US Hay
Exports
West Coast alfalfa exports to China increased 42%
year over year, spurred by the tariff
exemption of September. April alfalfa exports set
a new monthly record of 290,000 metric
tons. China bought 127,000 metric tons in April,
just under last October’s record high.
Sales to Japan reached 66,000 metric tons, the
highest monthly total since 2013.
Exports to the Middle East eased but were offset
by recovery in Chinese exports. Total
alfalfa exports are up 9% year over year.
Shipping container availability and ship sailings
remain inconsistent as demand for
consumer goods fluctuates.
Grass hay exports grew 3% year over year. Japan
increased imports 8% and Taiwan
increased imports 4%. Chinese imports of grass
hay nearly tripled. The growth in grass
exports to China are favorable but still comprise
warm season grasses from the
Pacific Southwest. Timothy exports will likely begin
during the 2020-21 season.
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