Hay Market Demand And Price Report For The Upper Midwest As of March 7 , 2016

Mar 09, 2016

Demand and Sales Activity

Overall h ay price was steady to $5.00 per ton stronger th a n the previous report . Currently supply exceed s demand and lower quality hay is the majority of the supply . S mall square bale alfalfa continues to demand a premium pri ce regardless of quality .

For Nebraska , the bulk of the hay sold steady with light to moderate demand . The talk this week is baling corn stalks with improved weather . There is good demand for grin d ing hay.

For Iowa , w eak er prices this week reflected the quality of hay at the auction, mostly lower quality . Bedding prices were weaker with warmer temperatures expected the next week.

In South Dakota , hay traded on a mostly steady market with li ght interest and demand . M a rkets discounted low quality hay. Warm temperatures have created some diffic ulty in moving hay and bedding as some road weight limits are in place . Best demand is for grinding hay and average quality alfalfa or alfalfa/grass hay . Very little inquiry for high testing hay as milk prices are around $14.00.

For Missouri, warmer weather has cattlemen looking for green grass rather than feeding stored feed . Inte rest in buying hay is slow with few sales actually occurring . Farmers in the hay business have discontinued the hay ad , because of so little demand . Hay supply is moderate , demand is light, and prices are steady.

In Southwest Minnesota, only lower quality hay offered at auction this week . Prices were steady for the quality offered. Straw market was str ong.

For Illinois, hay d emand was moderate to good with steady pricing , large square bales were discounted this week. Many producers are not concerned as they have inventory to get them into spring and hope for a better hay season this year . Straw is in demand in the north and central regio ns.

In Wisconsin , hay supply exceeds demand at most auctions . Excessive l ower quality hay is available and prices may be discounted . As in other markets , small lots of small square bales have a good demand and better price compared to large packaged hay .

Straw prices are st eady with price reflecting the quality of the straw . S mall square bale price dropped about $0 .50 per bale and averaged $ 2 . 4 5 a bale (range of $ 1 . 0 0 to $6.00) . L arge square bale price saw an increase of $15.00 a bale this week , with an average price of $ 46 . 0 0 per bale (range of $ 18 . 00 to $ 5 1 .00); and large round bale s w ere $ 4 .00 lo wer compared to the last report with an av erage price $ 28 .00 per bale ( range of $ 20 .00 - $ 55 .00 per bale ) .

Source:uwex.edu

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.