USDA Hay Report - Dec 24, 2008

Holiday stockpiling over the last month resulted in slower hay sales this week.

AMARILLO, Dec 24, 2008 -- Hay sales have been extremely limited during this
holiday period as most of the users have procured adequate supplies to get them
through the holidays, which is normal during this time of the year.

Prices as a whole remain mostly steady, but spot sales on small bales of high quality alfalfa have begun to climb considerable as supplies dwindle. Late cutting fine stemmed products (clippings) have particularly jumped in recent weeks, with some deliveries quoted at over 300.00 per ton on a delivered basis. Users of high quality small square bales are being forced to turn to 3x3 bales in an attempt to find suitable products.

The contracting season for corn silage is quickly approaching and it will be
interesting to see how the declining input costs as well as commodity prices
affect the number of acres of corn silage and hay in the Panhandle and North
Texas. Another item that will no doubt have some effect in the upcoming year on
hay use and on the amount of acres of hay will be the declining milk prices and
the impending culling of cows.

Many areas around the state have endured dry conditions, forcing early
supplemental feeding, and depleting hay supplies. Winter grazing of wheat, oats
and rye pastures have been limited due to dry weather in many areas of the
state. North Texas wheat pastures are in desperate need of moisture, especially
those in the Western part of the region. There already have been reports of
cattle being pulled off of wheat pastures that had looked good early in the
fall. The much needed moisture at this point would not bring much relief until
February at the soonest in the North Texas wheat fields due to cold weather, but
would help Eastern and Central rye and oat pastures immediately.

The state of Texas Department of agriculture has the Hay and Grazing Hot Line
set up for buyers and sellers, number is 1-877-429-1998. The web site for TDA
is www.tda.state.tx.us. Prices for hay and pellets quoted per ton except where
noted.

Panhandle:
Alfalfa: Small Squares: Delivered: Supreme quality 292.00-312.00; Premium to
Supreme quality 230.00-250.00, 7.00-8.50 per bale; Good to Premium quality
200.00-230.00, 6.50-7.00 per bale. Large Squares: Delivered: Supreme to Premium
quality 200.00-260.00; Good to Premium quality 175.00-200.00.
Chopped Alfalfa: Delivered to feedlots: North: 195.00-200.00. South: 200.00-
215.00.
Coastal Bermuda: Small squares: Delivered: 7.00-7.50 per bale. Large rounds:
Delivered: Premium quality: 140.00, 85.00 per roll; Good quality 125.00-135.00;
65.00 per roll.
Prairie Hay: Small squares: Delivered: 175.00-190.00; 7.00 per bale. Large
squares: Delivered: 140.00-160.000. Large rounds: Delivered: 85.00 per roll.
Sorghum-Sudan Grass: Large squares and rounds: Delivered: 100.00.
Wheat: Delivered: Small squares: 4.65 per bale. Large rounds: 130.00.
Hay Grazer: Large rounds: Delivered: 90.00-140.00.

West Texas:
Alfalfa: Small Squares: FOB: Premium to Supreme quality 230.00-280.00, 7.50-
10.00 per bale; Good to Premium quality 200.00-230.00; 7.00-7.50 per bale.
Large Squares: Delivered: Premium to Supreme quality 220.00-260.00; Good to
Premium quality 190.00-230.00; Good quality 160.00-190.00.

North, Central and East Texas:
Alfalfa: Small Squares: Delivered: Premium to Supreme quality 240.00-300.00,
7.00-10.00 per bale; Good to Premium quality 6.00-7.00 per bale. FOB: Good to
Premium quality 5.00-7.00 per bale in the barn. Large Squares: Delivered:
Premium to Supreme quality 230.00-260.00; Good to Premium quality 180.00-230.00.
Coastal Bermuda: Small Squares: FOB: Premium quality 6.00-8.50 per bale; Fair
to Good quality 5.00-6.00 per bale. Large rounds: FOB: Premium 70.00-90.00;
Good quality 50.00-70.00; Fair quality 40.00-50.00 per roll.

South Texas:
Coastal Bermuda: Small squares: FOB or delivered locally: Good quality 5.00-
7.50 per bale. Large rounds: FOB: Good quality 50.00-70.00; Poor quality 30.00-
40.00 per roll.

See the full report at http://www.ams.usda.gov/mnreports/am_gr310.txt