December 20, 2014
The following is the U. S. Dept of Ag Report for December 19 (USDA does not report on Arizona Hay):
***This will be the last report published for 2014. The next available
report will be on January 9th 2015.***
“Compared to last week: All classes traded mostly steady on light demand on very light tests. Trade was moderate to inactive. Regions in the northern part of the state are expecting another round of moisture Friday and Saturday. Local supplies of higher test hay are tight. This is forcing brokers and dairies to look out of state boarders to procure that type of hay. Getting 56 plus, 90 percent TDN, hay delivered into the dairies is still costing over 300.00 per ton. With the recent rains and current available supplies, the demand for lower test hay continues to trend down. Ports are having issues getting product shipped out. According to an article published in Progressive Farmer this week, the issues are tied to the labor talks. Exporters have all but exited the market until these issues are resolved. Prices reported FOB at the stack or barn.”
California Wholesale Hay Prices Region 6 Southeast California.
Prices are for Premium Quality.
Alfalfa is $225/ton or $11.25/bale. Expect California Alfalfa Retail to be roughly $13.75 or more. Arizona grown should be less. (Cost for shipping should be less due to reduced cost of fuel)
Bermuda Premium is $220.00/ton or $11.00 per bale +delivery should bring retail in Arizona to roughly $13.50/bale. We should be paying less for Arizona Bermuda.(Cost for shipping should be less due to reduced cost of fuel)
Hay supplies rebound in 2014/15
USDA’s Nov. 13 Feed Outlook report recapped the domestic hay situation.
U.S. production of alfalfa and alfalfa mixtures is up 12% in 2014, with notable year-over-year production gains forecast. As of Oct. 1, production gains were expected in Arizona, California, Colorado, Idaho, Michigan, Minnesota, Nebraska, New Mexico, South Dakota and Wisconsin.
Yield gains and expanded area harvested contribute to the 6.94-million-ton production increase. Yields averaged 3.55 tons per acres in 2014, up from 3.24 tons in 2013. Area harvested is forecast to rise from 17.76 million acres to 18.19 million. Increases in area harvested are not attributable to a substantial expansion in any single state. Rather, most states posted modest positive gains; only 8 of the 29 reporting states indicate a decline in area harvested.
Despite production gains, hay prices have generally remained robust over the past year. For example, in October 2013, the all hay, alfalfa and other hay prices were estimated at $174, $193, and $139/ton, respectively. In October 2014, these prices are forecast at $173, $194, and $125/ton – between 100% and 90% of the 2013 price. Strength in the dairy sector is providing price support, in addition to premiums paid for high-quality hay that is being transported to drought-affected regions of the country from areas of relative abundance.