Overall US hay stocks are up from last year but still below average, said Derrell Peel, Oklahoma State University Agricultural Economist, in a letter to Extension Agents called Cow/Calf Corner.
Weather challenges last year led to questions about the quantity and quality of hay production and supply, Peel said. But now, USDA reports provide a summary of 2019 production and the status of stocks as of Dec. 1.
STOCKS UP IN WEST, MIDWEST; DOWN IN EAST
Hay stocks generally were up year over year in the western, mountain and plains states and the Corn Belt but down in the great lakes, Appalachian and eastern regions, he said.
Total Dec. 1 hay stocks were 84.488 million short tons, 6.9% more than 79.055 million a year earlier but still 5.4% below the 2014-2018 average or 89.272 million, Peel said.
Missouri had the largest hay stocks and showed the most increase year over year with stocks up 64.3% at 6.900 million short tons, the highest for the state since 2009, he said. Among the top 10 states for hay stocks, Kentucky, Nebraska, Oklahoma and Tennessee had year-over-year declines.
Data for hay production was reported as alfalfa and other hay. Total production of all hay was 128.864 million short tons, up 4.3% year over year from 123,600 million and consisted of 42.6% alfalfa hay and 57.4% other hay.
Total hay production was 2.4% below the 2014-2018 average, Peel said.
ALFALFA DOMINATES SOME STATES
The top 10 hay production states included some states dominated by alfalfa hay production including California, Montana and South Dakota and other states dominated by other hay production including Kentucky, Missouri, Oklahoma and Texas. Some states like Kansas, Nebraska and North Dakota have more balanced mixes of alfalfa and other hay production.
Alfalfa hay tends to be grown most in northern regions, in large dairy production areas and in some feedlot production areas, Peel said. In addition to dairy and feedlot production, alfalfa also is used for beef cattle feed in regions where it is grown.
Total 2019 alfalfa hay production was up 4.3% year over year but was down 4.6% from the 2014-2018 average, he said. Among the top 10 states, alfalfa production was up in all states except California and Nebraska.
Other hay production includes a wide range of non-alfalfa dry forages and is used mostly for beef cattle production, Peel said. Total production was up 4.3% year over year, just 0.8% below the 2014-2018 average.
Other hay production was up 11.4% among the top 10 other hay producing states but was down in Kentucky, Nebraska and Tennessee.
SUPPLIES ADEQUATE
Total hay supplies appear to be adequate although quality may be an issue in some instances, he said. However, average prices were projected to increase 2% to 4% over the previous crop year.
Nebraska stands out as a major hay state with decreased production and stocks but surrounded on all sides by states with increased production.
CATTLE, BEEF RECAP
Cash cattle trading was reported Wednesday in the Plains at $124 per cwt, steady with the bulk of last week’s sales. No dressed-basis trading was reported Wednesday but took place last week at $198 to $199 per cwt, down $1 to $2.
The USDA choice cutout Wednesday was up $0.45 per cwt at $214.96, while select was off $1.45 at $212.02. The choice/select spread widened to $2.94 from $1.04 with 120 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Tuesday was $145.17 per cwt, down $0.29. This compares with Wednesday’s Jan contract settlement of $143.92, down $1.15.