Week ending May 04, 2018
Compared to last week of alfalfa hay sold steady on a light test.
Demand was very good from local customers and from out of state
buyers. There are a few producers holding some inventory just in case
they need to supplement their own cattle herds until grass starts or if
the summer is dry. Some areas of the state has received some rain with
other areas still needing some moisture. Most of the small grains and
sugar beets are planted with producers getting ready to plant corn in the
near future. All prices are dollars per ton FOB the field or hay barn
unless otherwise noted. Prices are from the most recent reported sales.
Eastern Wyoming
Alfalfa: Supreme large square bales 200.00; Good large square bales
170.00. Supreme large round bales 185.00; Fair to good large round bales
160.00. Sun-cured alfalfa pellets 15 percent protein 240.00.
Central and Western Wyoming
Certified weed seed free alfalfa cubes 230.00-260.00.
Thursday, May 3, 2018
Wyoming Hay Summary
Nebraska Hay Summary
Week Ending May 04, 2018 Compared to last week alfalfa hay sold fully steady. Grass hay, ground and delivered hay sold steady. Dehy alfalfa pellets in the East sold steady and in the Platte Valley sold steady to 10.00 higher. Demand was good from very small producers to large scale operators. Many producers are quickly filling orders and are waiting for trucks to ship product. Current stands of alfalfa is slow to grow as cool weather has prevailed in the last 7 days. Some areas of the state received rain early in the week along with hail and a few tornados in some areas. Hopefully warmer weather is on the horizon to aid in the growth of all forages. All sales are dollars per ton FOB the field or hay barn, unless otherwise noted. Eastern/Central Nebraska Alfalfa: Good large square bales 145.00-150.00, fair large square bales 130.00. Good large round 85.00-95.00, few at 100.00 with some loads at 120.00 to out of state buyers. Grass Hay: Premium large round bales 140.00, Good to Premium large round bales 100.00-120.00; Fair to Good large round bales 85.00-90.00. Premium small square bales of grass hay 150.00. Cornstalks large round bales 45.00-70.00. Dehy Alfalfa pellets 17 percent protein 230.00-240.00. Platte Valley area of Nebraska Alfalfa: Good large round bales 100.00. Ground and delivered alfalfa 130.00-135.00, few at 140.00. Ground and delivered alfalfa/cornstalks 120.00-125.00. Ground and delivered alfalfa/soybean stubble 115.00- 120.00. Ground and delivered cornstalks 95.00-100.00. Dehy pellets 17 percent protein 215.00-220.00. Western Nebraska Alfalfa: Supreme large squares 185.00; Good large square bales 155.00- 165.00, Fair large square bales 135.00-150.00. Good large round bales 170.00. Straw in large square bales 65.00. Sudan grass in large round bales 65.00. Ground and delivered alfalfa 150.00-190.00.
Wednesday, May 2, 2018
Alfalfa jumps $11 in March
The all-hay and alfalfa hay price averages both moved higher during March based on USDA’s most recent Agricultural Prices report released last week. The all-hay price was $148 per ton, up $5 per ton from the previous month and $17 higher than March 2017. Hay other than alfalfa was surprisingly down $1 per ton to $123, which is $4 per ton lower than March 2017.
Market strength is coming from alfalfa. The month-to-month average alfalfa price was up $11 per ton in March to $166 per ton, which is a whopping $32 per ton more than one year ago. The alfalfa hay price has moved up $18 per ton since December, and the current monthly average price is the highest it’s been since July 2015. As a general rule, alfalfa prices usually don’t peak until April or May. The 2017 peak was in May at $155 per ton.
Lower December 1 hay stocks coupled with a late spring that has forced some livestock producers to seek additional hay supplies are likely contributing to the stronger hay prices. Expect the trend to continue over the next few months. It’s still a little early to know how Midwest alfalfa came through the winter. If there is significant winterkill, that could lend further strength to the market.
The USDA price averages account for all qualities of hay sold and the final U.S. estimate is a volume-weighted average rather than a simple average of state values. Those states with the most volume sales will impact the final U.S. dollar value more than those states with fewer sales.
The largest alfalfa price gainers in March were New Mexico (up $25 per ton), Ohio (up $20), Iowa (up $17), Kansas (up $14), Minnesota (up $13), Nebraska (up $12), and Pennsylvania (up $11). Only three states had price declines: New York, Michigan, and Wisconsin. The $48 per ton drop in the New York price has to be questioned; expect to see a price adjustment in next month’s report.
The highest alfalfa hay prices are being reported from Kentucky ($215 per ton), California ($205), Texas ($205), Arizona ($200), and New Mexico ($200).
The lowest prices can be found in North Dakota ($109 per ton), Nebraska ($113), and South Dakota ($123).
Tuesday, May 1, 2018
Hay Market Report: Another small decline forecast for hay acreage in 2018
The USDA estimated 2018 dry hay acreage at 53.7 million acres, down just 1 percent (58,000 acres) from a year ago. If realized, this will represent the second lowest total U.S. hay harvested area since 1908, behind only 2016.
Although the decline is small, U.S. hay acreage attrition will continue in 2018, according to the USDA Prospective Plantings report, released March 29. The report provided a survey-based estimate of acreage to be harvested as dry hay this year.
On an acreage basis, four states are expected to increase area for hay harvest by more than 120,000 acres, led by Montana (+150,000 acres) and Ohio (+140,000 acres). Others are Minnesota and Oklahoma (both +120,000 acres). Producers in Montana, North Dakota and South Dakota are optimistic about harvesting more acres than last year to replenish reduced stocks resulting from a dry 2017 production cycle.
In contrast, states expected to reduce hay harvest area are Pennsylvania (-170,000 acres), Missouri (-100,000 acres) and Oregon, Kentucky and New York (down 90,000, 80,000 and 70,000 acres, respectively). States in the Southeast are planning to harvest fewer acres than in 2017.
Record lows for all hay harvested area are expected in California, Connecticut, Illinois, Rhode Island and Wisconsin in 2018.
Among the top dairy states, California, Wisconsin, Idaho, Pennsylvania and New York are expected to reduce hay acreage with Texas unchanged and only Michigan increasing acreage (+20,000).
Drought area improves
The percentage of U.S. hay acreage located in areas experiencing drought improved somewhat from last month. The USDA’s World Agricultural Outlook Board estimated 21 percent of U.S. hay-producing acreage was located in areas experiencing drought as of March 27 (Figure 1).
That’s a 4 percent improvement from a month earlier. Similarly, about 27 percent of alfalfa hay acreage remained under drought conditions as of late March, also about 4 percent less than a month earlier (Figure 2).
Drought areas cover Kansas, Oklahoma, Texas, Colorado, New Mexico, Arizona, Utah and California in the Southwest, with Oregon, northeastern Montana, North Dakota, South Dakota still under dry conditions. Dry pockets also exist in the Southeast.
As of March 27, the USDA weekly weather and crop bulletin reported Arizona’s alfalfa crop was rated mostly good to excellent, with harvesting taking place on almost three-quarters of the state’s acreage. Alfalfa started to green in some locations of Nevada.
Hay prices
The latest available USDA monthly ag prices report was released March 28, summarizing February 2018 prices.
Alfalfa
Western markets were the primary driver in pushing U.S. average alfalfa hay prices higher. February 2018’s average price of $155 per ton was up $3 from January and $28 more than February 2017; it was the highest since May 2017.
Regionally, averages were up in the Northwest and Southwest (Figure 3) where dry conditions remain the most extensive.
Oklahoma saw the largest jump from January, up $19 per ton, with Washington up $10. Pennsylvania led decliners, down $22 per ton from a month earlier; Iowa, Kansas, Michigan, Ohio, South Dakota and Texas saw lower prices as well.
As with alfalfa hay, individual state price changes from a year earlier were more notable. February 2018 prices for other hay were up $75 per ton in Washington and $35 per ton in Arizona. In contrast, New York saw a $47 drop in the year-to-year average other hay price, and the price in Pennsylvania was down $18 per ton.
Highest other hay prices were in Washington ($230 per ton) and Arizona and Colorado (both $190 per ton); lowest prices were in Kansas ($76 per ton) and Nebraska and North Dakota ($79 per ton).
Figures and charts
The prices and information in Figure 3 (alfalfa hay market trends) and Figure 4 (“other hay” market trends) are provided by NASS and reflect general price trends and movements. Hay quality, however, was not provided in the NASS reports. For purposes of this report, states that provided data to NASS were divided into the following regions:
- Southwest – Arizona, California, Nevada, New Mexico, Oklahoma, Texas
- East – Kentucky, New York, Ohio, Pennsylvania
- Northwest – Colorado, Idaho, Montana, Oregon, Utah, Washington, Wyoming
- Midwest – Illinois, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Wisconsin
Organic hay
The USDA’s organic hay report, released March 28, reported delivered Supreme organic alfalfa large square bales in a range of $330 to $360 per ton. No prices were reported for FOB farm gate organic hay.
Other factors
Other factors impacting forage producers include:
- Exports: Latest monthly (February 2018) hay export numbers were not available at Progressive Forage’s deadline.
- Dairy outlook: U.S. milk production posted another 1.8 percent increase in February, fueled primarily by year-over-year gains west of the Mississippi River. Cow numbers grew for a fourth consecutive month. Compared to a year earlier, the largest growth in cow numbers was in Texas (+16,000 head) and Colorado (+12,000 head), with New Mexico (+9,000 head), Arizona (+6,000 head) and Utah (+5,000) also posting significant gains. California (-17,000 head) and Minnesota and Wisconsin (each -5,000 head) led decliners.
The number of U.S. dairy cows culled during February was the highest for the month dating back to 2012 (a leap year).
February milk prices weakened and will likely be the low point of the year. The U.S. average margin over feed costs slipped to $6.88 per hundredweight (cwt), with corn, soybean meal and alfalfa hay prices all increasing during the month. Together, total February feed costs of $8.42 per cwt of milk sold were up 44 cents from January and the highest since July 2016.
Based on milk and feed futures prices as of March 27, the Program on Dairy Markets and Policy projects monthly Margin Protection Program for Dairy (MPP-Dairy) margins will hover around $7 per cwt through June.
- Beef outlook: A slower-than-expected pace in first-quarter cattle slaughter implies second-quarter beef production could pick up, putting pressure on prices. U.S. cattle and calves in large feedlots totaled 11.7 million head on March 1, 2018, 9 percent more than a year earlier.
Pasture and range conditions were rated poor to fair across a wide section of the Plains and Southwest, with supplemental feeding a common chore in the region.
Colorado livestock producers were aggressively trying to purchase hay in preparation for potentially poor grazing conditions. In the Texas Panhandle, rainfall started turning pastures green again, but hay remains in demand and difficult to find.
- Fuel prices: Retail pump prices were unseasonably higher, with demand on the rise. Fuel taxes have also increased in some states. The U.S. Energy Information Administration (EIA) estimated U.S. retail prices for regular gasoline ended March up a nickel from the previous week, to $2.65 per gallon, and stood 33 cents per gallon higher than a year ago.
The weekly U.S. average diesel fuel price rose 4 cents to $3.01 per gallon and was 48 cents higher than a year ago. The early rise in prices does not bode well for summer.
Kansas Hay Market Report
Ground alfalfa movement: Southwest/South Central
Tonnage: 7,704/4,006 Last week: 8,297/5,007 Last year: 10,401/3,887
Hay market trade activity is very light, while demand remains very good for all
types of hay. Prices for all hay types were mostly steady. Rain was received
earlier in the week, anywhere from a few tenths of an inch to around two inches.
Although this will help green things up it will do little in terms of sustained
drought relief. Possibly more troublesome are the dramatic temperature
fluctuations. The cooler temperatures continue to suppress the growth of both
alfalfa and grass hay. According to the U.S. Drought Monitor, the abnormally dry
(D0) category decreased to 97 pct, moderate drought (D1) is at 83 pct, severe
drought (D2) is at 60 pct, extreme drought (D3) is at 27 pct and exceptional
drought (D4) is at 7 pct. If you have hay for sale, and/or need hay here in
Kansas, use the services of the Internet Hay Exchange:
www.hayexchange.com/ks.php.
Southwest Kansas
Dairy alfalfa, grass hay, grinding alfalfa and ground/delivered, steady;
movement slow. Alfalfa: horse, small squares 240.00-250.00. Dairy, .95-
1.00/point RFV, Supreme 175.00-185.00, Premium 160.00-170.00, Good 140.00-
150.00. Stock or Dry Cow alfalfa, 175.00-185.00. Fair/Good grinding alfalfa,
150.00-160.00. Ground and delivered locally to feedlots and dairies, 165.00-
185.00 with an instance at 200.00. Grass hay: Bluestem large squares 80.00-
90.00, large rounds 70.00-80.00. The week of 4/22-4/28, 7,704T of grinding
alfalfa and 1,449T of dairy alfalfa were delivered. Sorghum ground and delivered
105.00-115.00; wheat hay ground and delivered 125.00-135.00; Cornstalks: large
rounds 55.00-65.00, ground and delivered 70.00-80.00.
South Central Kansas
Dairy alfalfa, grinding alfalfa, ground/delivered, grass hay, steady, alfalfa
pellets steady to 10.00 higher; movement slow. Alfalfa: horse, small squares
190.00-200.00. Dairy, .95-1.00/point RFV, Supreme 175.00-185.00, Premium 160.00-
170.00, Good 140.00-150.00. Stock cow alfalfa, 145.00-160.00 delivered.
Fair/Good grinding alfalfa, 130.00-150.00. Ground and delivered locally to
feedlots 165.00-175.00 with an instance at 185.00. Alfalfa pellets: Sun Cured 15
pct protein 190.00-205.00, 17 pct protein 190.00-210.00, Dehydrated 17 pct
235.00-245.00. The week of 4/22-4/28, 4,006T of grinding alfalfa and 498T of
dairy alfalfa were delivered. Grass hay: bluestem, large squares 90.00-100.00,
large rounds 75.00-85.00; Brome, large squares 130.00 delivered; Oat hay, large
squares 85.00-95.00, Sudan large rounds 75.00-80.00. Cornstalks: large rounds
60.00-65.00, cornstalks ground and delivered 70.00-80.00, Straw large rounds
70.00-75.00.
Southeast Kansas
Dairy alfalfa, horse/goat, stock cow alfalfa, grinding alfalfa,
ground/delivered, grass hay steady; movement slow. Alfalfa: horse or goat,
215.00-225.00. Dairy .90-1.00/point RFV. Stock cow alfalfa 140.00-150.00.
Fair/Good grinding alfalfa, none reported. Ground and delivered, none reported.
Grass hay: bluestem, premium small squares 110.00-130.00 with an instance at
150.00. Good, mid and large squares 90.00-105.00 with an instance at 120.00,
large rounds 70.00-80.00 with an instance at 90.00-100.00. Brome: small squares
6.00-8.00/bale. Good, mid and large squares 100.00-120.00 with an instance at
135.00, large rounds none reported. Oat hay, large rounds 85.00-95.00, with an
instance at 130.00 delivered. The week of 4/22-4/28, 1,220T of grass hay were
delivered. Straw, mid and large squares 50.00-60.00. Mulch, large rounds 50.00-
55.00.
Northwest Kansas
Dairy alfalfa, grinding alfalfa and ground/delivered steady; movement slow.
Alfalfa: small squares, 6.00-7.00/bale. Horse or goat, 220.00-230.00. Dairy,
Premium/Supreme .90-.95/point RFV. Stock cow, fair/good 120.00-130.00. Fair/good
grinding alfalfa, 100.00-120.00. Ground and delivered locally to feedlots and
dairies, 120.00-130.00. Cornstalks, large rounds 70.00-75.00.
North Central-Northeast Kansas
Dairy alfalfa, grass hay, grinding alfalfa, ground/delivered steady; movement
slow. Alfalfa: horse, premium small squares 9.00-10.00/bale, good small squares
8.00/bale. Dairy .95-1.05/point RFV, Supreme 175.00-195.00, Premium 170.00-
185.00, Good 150.00-170.00. Stock Cow, good 120.00-125.00. Fair/Good, grinding
alfalfa, 110.00-120.00 with an instance at 150.00. Ground and delivered, 140.00-
150.00. Grass hay: bluestem, small squares 5.00-6.00/bale, large squares 105.00-
115.00, large rounds 90.00-100.00. Brome: Good, small squares 6.00-8.00/bale,
mid and large squares, 125.00-130.00, good large rounds 85.00-95.00. Sudan large
rounds 60.00-70.00; Straw: small squares, 4.00-5.00/bale, large squares 75.00-
85.00, large rounds 65.00-75.00.
Corsica, SD Hay and Straw Auction
For Monday, Apr 30, 2018 Receipts: 33 Loads Last Week: 24 Loads Last Year: 32 Loads All prices dollars per ton FOB Corsica, SD. One load Small Squares equals approximately 5 tons; Large Squares and Large Rounds range from 10-25 tons per load. Alfalfa: Good: Large Rounds, 12 loads 132.50-167.50. Fair: Large Rounds, 3 loads 105.00-127.50. Grass: Good: Large Rounds, 10 loads 110.00-152.50. Fair: Large Rounds, 5 loads 87.50-107.50. Oat Hay: Large Rounds, 1 load 92.50.
Rock Valley Hay Auction
For Monday, Apr 30, 2018 ***Note, this was the final Monday hay auction until Nov 2018*** Receipts: 26 loads Last Week: 34 loads Year Ago: No Sale Prices dollars per ton, except where noted. All sales FOB Rock Valley, Iowa, vicinity. One load Small Squares equals approximately 5 tons; Large Squares and Large Rounds range from 10-25 tons per load. Alfalfa: Good: Large Rounds, 2 loads 165.00-175.00. Fair: Large Squares, 2 loads 150.00-155.00; Large Rounds, 2 loads 140.00-145.00. Utility: Large Rounds, 2 loads 112.50-125.00. Grass: Premium: Large Rounds, 1 load 170.00. Good: Large Squares, 1 load 150.00; Large Rounds, 1 load 140.00. Fair: Large Rounds, 2 loads 120.00-130.00. Alfalfa/Grass Mix: Fair: Large Rounds, 1 load 137.50. Oat Hay: Large Rounds, 1 load 85.00. Straw: Large Rounds, 1 load 77.50. Corn Stalks: Large Rounds, 10 loads 37.50-52.50.
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