USDA Hay Report - Feb. 6, 2009

Feedlots begin grinding corn stalks, driving alfafa prices down. Drought impact worsens, coastal prices still steady.

AMARILLO, TX, Feb. 6, 2009 -- Compared to last week, chopped alfalfa and large bale prices weakened as sellers found resistance from feedlots who are looking for cheaper roughage alternatives. Several lots are grinding anything including corn stalks to provide a roughage source at a cheaper price. Milo hay in particular is being ground and is providing excellent tests results.

Negative margins in the beef feeding sector along with losses in the dairy sector has reduced demand for some hay products. Sellers are trying to move inventories of old crop prior to the new crop, precipitating lower prices in some hay products. The exception seems to be high quality horse or dairy type hay that is almost always in short supply by the end of the winter.

Drought conditions in many areas have depleted hay stocks as supplemental feeding has occurred all winter even on wheat, oats, and rye pastures, keeping prices steady in those areas. Livestock producers in severe drought areas in south-central Texas have been forced to go far out of their normal marketing areas in order to purchase hay needs as hay has become extremely short.

Large rounds of any kind of grass very scarce and hard to find as producers have sold-out. Many feedlots and dairy farms are beginning to contract hay and corn silage for next year.

The state of Texas Department of Agriculture has the Hay and Grazing Hot Line set up for buyers and sellers, that 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 250.00-300.00, 8.00-10.00 per bale;
Good to Premium quality 200.00-250.00, 7.00-8.00 per bale.

Large Squares: Delivered:
Supreme to Premium quality 200.00-250.00, instances to 265.00;
Good to Premium quality 190.00-200.00;
Fair to Good quality 160.00-190.00.

Chopped Alfalfa:
Delivered to feedlots:
North: 175.00-185.00.
South: 180.00-190.00.

Milo Hay: Ground and Delivered: 100.00.

Wheat Hay:
Large rounds: Delivered:
Good quality 120.00-140.00;
Poor quality 100.00

Sorghum Hay: Large rounds: Delivered: 100.00-110.00.

Prairie grass hay: Delivered: large rounds: 140.00.

Haygrazer: Delivered: large rounds 125.00-135.00.

West Texas:
Alfalfa:
Small Squares:FOB:
Premium to Supreme quality 240.00-300.00, 8.00-10.00 per bale;
Good to Premium quality 200.00-240.00; 7.00-8.00 per bale.

Large Squares: Delivered:
Premium to Supreme quality 225.00-250.00;
Good to Premium quality 190.00-225.00;
Good quality 160.00-190.00.

North, Central and East Texas:
Alfalfa:
Small Squares:
Delivered:
Premium to Supreme quality 250.00-300.00, 8.00-10.00 per bale;
Good to Premium quality 7.00-8.00 per bale.

FOB:
Good to Premium quality 5.00-7.00 per bale in the barn.

Large Squares: Delivered:
Premium to Supreme quality 200.00-250.00, instances to 265.00;
Good to Premium quality 190.00-200.00.

Coastal Bermuda:
Small Squares: FOB:
Good to Premium quality 6.00-7.50 per bale;
Fair quality 5.00-6.00 per bale.

Large rounds: FOB:
Premium 70.00-80.00;
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 to Premium quality 6.00-7.50;
Fair quality 5.00-6.00 per bale.

Large rounds: FOB:
Premium quality 70.00-90.00;
Good quality 50.00-70.00;
Poor quality 30.00-40.00 per roll.

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