USDA Hay Report - Jan. 9, 2009

Prices remain steady, but market is softening.

AMARILLO, TX, Jan 09, 2009 -- Compared to last week, alfalfa prices mostly steady, however some are predicting it to soften in the next couple of weeks, for many reasons.

First, for dairymen the declining price for milk cannot justify the increased cost of
hay. Feedlots do not have the numbers and have their supplies filled at present. Also, previously held supplies are coming into the market causing somewhat of a surplus. Movement and trade activity have been slow to moderate for Alfalfa.

Prices on Coastal remain steady, and supplies range from scarce to moderate. Movement in some areas have picked up since the first of the year, and more producers are reporting increased inquiry, especially from those areas who are in severe drought with limited grazing pasture. Most areas in Texas continue to be extremely dry with cold and warm fronts hitting and limited or no moisture. Areas in the North and Panhandle have either been losing or close to losing their wheat crops due to no moisture. Supplemental feeding continues.

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: 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 170.00-200.00.

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.

Beardless Wheat: Large rounds: Delivered: 70.00 per roll.

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.