Beef and Hay Market Snapshot

Beef and Hay Market Snapshot

Northwest Farm Credit Services Knowledge Center’s Matthew Kloes gives an update on the beef industry.
Kloes: “U.S. cattle and beef prices remain strong. Although the process of rebuilding the cattle herd has begun, it will take time for that to translate to lower cattle prices. Meanwhile consumer demand for beef has been resilient. According to the most recent statistics choice retail beef prices rose to above $6.36 per pound in January. That marked the fourth time in five months that a new beef price record had been set at the meat counter.
Kloes adds that factors such as competitively-priced alternative proteins, improved weather conditions in major cattle producing areas, and lower exports due to the strong dollar and slowdowns at West Coast ports influenced markets as well.
Turning to the hay industry, the hay market is rather tepid ahead of the new crop harvest. Kloes continues with a hay update.
Kloes: “Drought and availability of irrigation water were primary drivers of the hay market in the Western U.S. last year. Early season prices were driven higher by poor pasture conditions and fears that water limitations would limit hay supplies throughout the season. We saw a lot of California hay buyers looking to lock in hay needs in the Northwest but unlike last year there is an apparent lack of urgency in the market in 2015.”

 

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