November 14, 2014
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.
The following is the U. S. Dept of Ag Report for November 07 (USDA does not report on Arizona Hay):
“Compared to last week: All classes traded steady on very light demand. Test hay had a firm undertone. Rain came this week leaving a half inch to an inch throughout the state. All prices reported are FOB at the stack or barn.”
California Wholesale Hay Prices:
Alfalfa is $275/ton or $13.75/bale. Expect California Alfalfa Retail to be $15.75 or more. Locally grown should be less than $15.75.
Bermuda Premium is $225.00/ton or $11.25 per bale +delivery should bring retail to $14.25/bale. We should be paying less for Arizona Bermuda.