Moisture Could Help 2019 Hay Production

With mostly excellent moisture conditions across the continental US, hay production this year could be very good, resupplying stocks used in last winter’s harsh weather.

Derrell Peel, Oklahoma State University Extension livestock marketing specialist, said in a letter to Extension Agents that the latest Crop Production report from the USDA’s National Agricultural Statistics Service said May 1 hay stocks totaled 14.9 million short tons, down 2.9% year over year.

However, May 1 hay stocks in 2018 also were small.  The 2019 figure was down 31.4% from the 2014-2018 average and 28.8% lower than the 10-year average from 2009-2018, Peel said.

The 2019 hay crop year is starting with inventories the smallest since the drought years of 2012-2013, he said.  More states had smaller year-over-year May 1 hay stocks than increases, but states with the largest stocks were mostly up including Texas (up 33.6%); South Dakota (down 3.2%); Montana (up 120.0%); Nebraska (up 52.9%) and North Dakota (38.9%).

Those five states accounted for 39.7% of total May 1 hay stocks, Peel said.

 

PRODUCTION DATA REPORTED AS ALL HAY

 

Hay production data is reported as all hay and in two sub-categories: alfalfa and other hay, Peel said.  Total hay production in 2018 was 123.6 million short tons, down 3.6% from a year earlier and down 9.1% from the previous 10-year (2008-2017) period.

2018 alfalfa hay production was down 5.7% from a year earlier and was 14.7% lower than the previous 10-year average, he said.  Other hay production was 2.0% lower than a year earlier and was down 4.4% from the 2008-2017 average.

 

COMPARISONS

 

Over the period from 2009 through 2018, alfalfa hay production averaged 44.9% of total hay production, while other hay accounted for 55.1%, Peel said.

The top 10 all-hay production states accounted for 45.8% of all hay production, Peel said.

The top 10 alfalfa hay producing states represented 59.4% of alfalfa hay production, while the top 10 other-hay producing states accounted for 55.0% of other hay production.

 

MOISTURE CONDITIONS GOOD

 

With mostly excellent moisture conditions nationwide currently, the prospects to rebuild hay supplies in 2019 around the country are very good, Peel said.  While wet conditions may affect crop planting, good moisture ensures hay and pasture growth; though continued wet conditions could affect hay quality.

Chris Penrose and Dan Lima from the Ohio State University Extension Service said in a Drover’s story last year that baling hay with moisture levels that are too high encourage mold growth.  This decreases the protein content and total nonstructural carbohydrates (AKA energy).

Mold also will make the hay less palatable to livestock and could even make it toxic, Penrose and Lima said.

Farmers also know that hay that is baled with a higher-than-desired moisture content can build up so much heat that it will catch fire.

A significant number of wheat acres are being grazed out and substantial acres have been cut for hay, Peel said.  Current low wheat prices and low hay stocks makes utilizing wheat for hay an attractive option for some producers.

 

CATTLE, BEEF RECAP

 

Cash cattle trading took place last week in the Plains at $117 to $118 per cwt, down $3 from the previous week.  Dressed-basis trade took place at $190 per cwt, down $3 to $5.

The USDA choice cutout Monday was up $1.14 per cwt at $221.45, while select was down $0.25 at $208.03.  The choice/select spread widened to $13.42 from $12.03 with 92 loads of fabricated product sold into the spot market.

The CME Feeder Cattle index for the seven days ended Friday, was not available.  Monday’s May contract settlement was $134.15, down $0.37.