Two years of drought have depleted US hay stocks severely, presenting challenges for cattle producers, said Derrell Peel, Oklahoma State University agricultural economist, in a letter to Extension agents called Cow-Calf Corner.
The Dec. 1 hay stocks report from the USDA showed total stocks of 71.9 million short tons, 16.4% below the previous 10-year average and the lowest Dec. 1 stocks on record in the data back to 1973, Peel said.
COMPARING STATES
Each of the top 10 states for hay stocks was down compared with the 10-year average and collectively were down 20.8% from the 2012-2021 average Dec. 1 stocks level, he said. The largest hay stocks on Dec. 1 were in Texas, 25.8% less than the 10-year average for the state.
Other top-10 states were down from the 10-year average ranging from Tennessee, down 10.9%, to Oklahoma, down 32.7%, he said.
Texas had the largest on-hand supplies Dec. 1 with 5.15 million short tons, down 25.8% from a year earlier, the USDA said. Texas also was the No. 1 hay producer, harvesting 6.53 million tons last year, a decline of 34.0%.
However, Texas did not rank among the top 10 states in alfalfa hay production, although it was the top state in grass hay production, coming in with 6.15 million short tons, which still was a decline of 33.9% from a year earlier.
Missouri had the second largest hay stocks on Dec. 1, with 4.65 million short tons, a decline of 15.2% from a year earlier, the USDA said. Missouri produced about 5.83 million tons of alfalfa and grass hay combined, a drop of 10.1% from a year earlier.
But Missouri also was not among the top 10 states in alfalfa hay production, the USDA said, producing 5.49 million tons of other hay, a drop of 5.1%.
South Dakota was third in all hay inventories on Dec. 1, with 4.35 million short tons on hand, the USDA said, a decline of 19.7% from a year earlier. South Dakota was sixth in all hay production last year, turning out 4.56 million tons, but this was down 15.8% from a year earlier.
South Dakota was fourth in alfalfa hay production, putting up 2.81 million short tons, but it did not rank in the top 10 for other hay output.
Kansas ranked fourth in total hay stocks on hand Dec. 1 with 4.10 million short tons. However, it ranked third in all hay production at 5.361 million tons. It was tenth in alfalfa hay production at 2.046 million tons and sixth in other hay production with 3.32 million.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $156.19 to $158.39 per cwt, compared with last week’s range of $156.92 to $158.85. FOB dressed steers, and heifers went for $245.76 to $250.96 per cwt, versus $246.75 to $251.19.
The USDA choice cutout Thursday was down $2.57 per cwt at $271.51 while select was up $1.83 at $255.69. The choice/select spread narrowed to $15.82 from $20 22 with 106 loads of fabricated product and 24 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were down $0.10 at $1.85 to $2.00 a bushel over the Mar corn contract. Bids in Kansas were steady at $0.85 over the Mar, which settled at $6.77 1/4 a bushel, down $0.04.
The CME Feeder Cattle Index for the seven days ended Wednesday was $177.87 per cwt down $1.22. This compares with Thursday’s Jan contract settlement of $178.10 per cwt, down $1.40.