This week's 55 Farms Newsletter - Much needed moisture in areas of the US
- By: "Farm Tender" News
- Cropping & Grain News
- Jun 13, 2018
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Throughout the U.S. we are starting to see moisture in some much-needed areas and hay production slowly starting to pick up. Dairies in drought-stricken states continue to shop for quality hay. Last week we saw dairies buy at 165/ton on good wheat hay in the field in Texas, however they turned down 120/ton for good wheat hay that was forty percent bearded. Demand remains high, and quality seems to be a must even in a wheat hay shortage market. Last week in Missouri there was some prime alfalfa sell at 250/ton and some fair grass hay bring 70/ton, while prime grass sold at 150/ton. We also saw some of the first wheat straw reported this year at 5 dollars for small square bales. Nebraska had good alfalfa trade at 200/ton while California had some prime alfalfa sell at 300/ton. Oregon had some orchard grass small bales sell at 210/ton and some triticale selling for 110/ton. Texas also sold some triticale for 150/ton in the field headed to a dairy and wheat straw contracted at 90/ton.
Release of farm bill draft
Last week we saw the Senate AG Committee release a farm bill draft, a major step in getting the farm bill in motion. It is being reported that farm income is at a decade low with farm debt on a record rise and international markets in jeopardy. The Farm bill that has been drafted is set to address these issues and provide clarity to some risk tool options farmers and ranchers have to help manage risk and protect their operations from the continuous rise of debt. All parts of the agriculture industry are feeling the economic downturn from producers to ag product and service companies. As we talked last week new equipment sales are down as producers choose to put a hold on spending and see what the farm bill and international trade outlook will do to long term commodity prices before taking on more equipment debt. Ag product and service companies continue to sell out, or merge with competitors to offer sustainability to this sector of the ag industry. This last week we saw Koenig Equipment a John Deere dealer acquire Cahall Brothers in Ohio.
Feeders remain strong
Not much change from last week on packer cattle as feeders remained strong around that 1.15 asking price and packers not giving it. However analyst do believe that after this big “wall” of beef that has currently hit the market is sold off that packers will be back to meeting feeders asking prices due to a huge demand in beef. Some believe that with the high demand and beef moving out to consumers for a nice packer profit, that this trend will continue and more beef will be needed in the coming weeks and months to keep up with demand. The record high beef that we have seen in the past couple of weeks is thought to actually be short of meeting over all demand. This week in Arkansas middle age small/medium framed fall calving cows sold at 875/hd and the short mouthed cows sold at 700/hd. Colorado had some fancy medium bred heifers trade at 1200/hd and Georgia had some nice five and six year old cows calving in the summer for 1065/hd. In a drought-stricken part of Texas one member sold some younger black angus influenced pairs in fair shape for 1100/pair.
Good wheat hay in Texas
This week we listed some good wheat hay in Texas at 100/ton. This seems to be the cheapest in the state we have seen so far and there is around 15000 rolls of it. If you are needing some be sure and check out listing 2107. We also have a couple of small young cow listings in Texas that are only selling due to drought so be sure and look them up!
Keep Listing!
Casey Collins - caseyc@55farms.com
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