NWFCS Midyear Hay Market Snapshot Summary
Posted on: Jul 15, 2018
Northwest Farm Credit Service (NWFCS) has released their midyear market snapshot on the hay market. The specifics on supply and demand as well as hay prices are summarized by region.
California: The number of acres in alfalfa is the lowest since 1919. Total production has been reduced by 44 percent, which equates to 3.5 million tons.
Oregon-California Klamath Basin: On the supply side, rain damaged up to 25 percent of first the first cutting. On the demand side, dairies, which typically represent a large buyer pool, remain inactive due to lower nutrient profiles in the first cutting. Though supply and demand are both down, all grades of hay realized a price increase from $20 to $40 per ton year over year. Hay is trading at prices from $155 to $225 per ton based on quality level.
Washington-Oregon Columbia Basin: Supply is low and California demand is strong. Combined these forces have had an effect on prices, which are now between $200 and $220 per ton for supreme-quality first cutting hay. Though some of the Klamath Basin hay is rain damaged, it has tested well and is selling around that $200 per ton figure. Feeder hay is trading at $150 to $160 per ton.
Idaho: Poor weather is the story in much of Idaho though the later maturing parts of the state fared well comparatively. Supreme-quality alfalfa is selling at about $180 per ton. With good-quality and fair-to-good quality dipping down to as low as $130 and $100 per ton respectively.
Montana: The drought of last summer and the extended snow cover earlier this year has resulted in a decrease in hay inventory of 43 percent year over year. The downward trend on supply is offset by an upward trend on price. Good quality grass hay in round bales is selling for up to $150 per ton compared to good quality alfalfa at $150 to $170 per ton. Supreme-quality alfalfa in small square bales is trading at a premium from $200 to $250 per ton.
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