From January to May, the average price of all types of hay across the US had been increasing seasonally, to $176 a short ton in May from $153 a ton in January, said Mark Johnson, Oklahoma State University Extension beef cattle breeding specialist, in a letter called Cow-Calf Corner.
HAY PRICES AND THE WEATHER
With the majority of the country receiving ample spring and early summer moisture, May prices appeared to have been the annual peak, Johnson said.
In June, the same hay price was down $11 from a month earlier to $165 a short ton, he said. Alfalfa posted a decrease as well, quoted at $177 a ton, down $14 from May.
As drought continues to hold a grip in the western US, it was mostly western states that quoted recent higher prices of hay, Johnson said.
The USDA Friday quoted premium forage quality alfalfa hay in Oklahoma at $160 a short ton, good quality hay at $150 to $215 a ton and fair quality alfalfa at $130. This compared with Texas where premium alfalfa hay was $245 to $265 a ton, good quality was $230 to $250 a ton and the price for fair quality was not available.
The USDA listed grass hay prices in Oklahoma Friday at $150 a short ton for premium quality, $60 a ton for good quality hay and $65 a ton for fair quality. In Texas, premium quality grass hay was $230 a ton, good quality $200 to $225 with fair quality prices not available.
MORE HAY
As a result of increased hay stocks coming into 2025, more acres and nature’s help, hay prices have continued to trend lower, Johnson said. The price forecast had been for the US hay price to average $165 a ton in 2025.
That expectation likely was on the high side, he said, with potential back towards $157 to $160 for an annual average, Johnson said. Many now expect prices to have a typical seasonal decrease into the end of the year.
Given that trend, fourth quarter prices should average around $150 a short ton, Johnson said.
THE BOTTOM LINE
The bottom line, Johnson said, is that increased acres and good weather probably will limit any significant increase in the hay market this year. There may be some regional differences, but prices currently are expected to trend near year-ago levels, yet average $10 to $15 lower in 2025.
Accordingly, end users can be a little more patient this year in procurement since prices are expected to continue trending lower for the next several months, Johnson said.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $239.00 per cwt to $245.20, compared with last week’s range of $236.22 to $244.13 per cwt. FOB dressed steers and heifers went for $373.13 per cwt to $383.31, compared with $369.86 to $385.93.
The USDA choice cutout Wednesday was down $1.33 per cwt at $411.84 while select was off $3.05 at $387.71. The choice/select spread widened to $24.13 from $22.41 with 85 loads of fabricated product and 19 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $433.37 per cwt, and 50% beef was $168.67.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.30 to $1.40 a bushel over the Sep corn contract, which settled at $3.82 1/2, down $0.05.
Twenty steer delivery intentions were posted.
The CME Feeder Cattle Index for the seven days ended Tuesday was $360.68 per cwt, up $1.51. This compares with Wednesday’s Aug contract settlement of $365.45, up $2.22, and Sep’s $365.40, up $0.35.