Weekly Hay Market Demand and Price Report for the Upper Midwest

as of May 17, 2013

Data Compiled by Ken Barnett, UW-Extension

All hay prices quoted are dollars per ton FOB point of origin for alfalfa hay unless otherwise noted.

The information presented in this report is compiled from public and private sales and reports in the Midwest.

The past several months of the weekly hay reports are archived. To view previous hay reports, go to the Buying and Selling Hay and Straw web site and click on the archived hay reports section.

Demand and Sales Activity

Compared to the previous week, small square bale prices were up 11%. Large square bale prices were down 10%. Large round bale prices were up 22%. Sales activity was light to active.

For Nebraska, hay prices were steady. Ground and delivered operators noted they have been very busy this week grinding or delivering ground product to ranchers. Many ranchers are unable to turn out on summer grazing and have been forced to buy extra feed until turn out is possible. Most are hoping to be on summer pastures the first week of June. Crop information per NASS of Nebraska: Corn planted was 43 percent, well behind last year’s 89 percent and 10 days behind the 77 percent average. Emerged corn was 2 percent, well behind last year’s 52 and 25 average. Soybeans planted were 7 percent, behind last year’s 56 percent and average. Sorghum planted was 2 percent, behind 22 percent last year and 12 percent average. Wheat conditions were rated 14 percent very poor, 34% poor, 40% fair, 12% good, and 0% excellent. Wheat jointed was 34 percent, well behind last year’s 94 percent and 2 weeks behind 67 percent average. Oat conditions were rated at 4 %very poor, 8% poor, 55% fair, 32% good, and 1%

excellent. Oats planted were at 95 percent, behind last year’s 99 and 98 average. Oats emerged were 59 percent, behind last year’s 91 percent and 83 percent average. For Iowa, there were no hay prices cited this week. However, some hay is still moving through area hay auctions. There probably won’t be any more prices for the main markets until the first cutting of new crop hay.

In South Dakota, hay prices were steady to $4.15 higher. Demand was very good as available supply of hay is very tight. Temperatures finally warmed this week, more like summertime as many areas saw the mercury rise to 95 degrees or higher coupled with 30 mph winds which only made dry conditions worse.

However, nice rain fell mid-week across Eastern South Dakota. Many areas received one- half inch, with more forecast through the weekend into next week is providing much needed relief. Alfalfa stands have finally greened and are actually growing now that temps rose. First cutting will be delayed because of

the cold temps in April and the first two weeks in May. Winterkill of alfalfa is being noticed in many areas, it is also reported to be a problem in other states.

For Missouri, alfalfa hay prices were $55.00 lower. Supply and demand are light. Conditions remain less than ideal for putting up hay. Conditions were also poor for alfalfa to make a strong recovery from the drought or for grass hay to have its best year. While the outlook on this year’s hay crop varies from not only county to county, but also field to field, the demand for out-of-state hay sales may begin sooner than Missouri hay is baled and ready for sale. Some hay has begun to hit the ground in Missouri with widely varying quality and yields. The stop-and-go early growth period looks to have a lasting effect and buyers and sellers alike are waiting to see the end result of this year's crop. New crop prices have not yet been established.

In Southwest Minnesota, hay prices were $32.90 higher on light alfalfa hay sales. The demand for Illinois hay was good, with moderate to good sales activity. Offerings were light to moderate. Hay prices were $9.35 higher.

For Wisconsin, hay prices were $27.00 higher on moderate trading at a quality-tested hay auction in Fennimore. Sharply cold weather early in the week was replaced by record warmth as southerly winds and approaching low pressure brought the warmest temperatures of the year to the state on May 14. Conditions were favorably dry and mild in the days to follow, affording farmers a larger window for

fieldwork activities compared to recent weeks. Despite increased fieldwork, the overall planting rate remained well behind normal after a slow start to the season. As of May 12, corn producers had planted only 14% of this year’s crop, 40 percentage points behind last year and 32 points behind the five-year

average. Another week of dry weather is needed for farmers to make significant planting progress.

Alfalfa winterkill was reportedly severe in some areas, with damage especially heavy on older stands. Producers were reportedly deciding which fields must be replanted and feed supplies remained tight. Pastures improved with the warm days and were rated at 3% very poor; 11% poor; 51% fair; 30% good; and 5% excellent.

Straw prices in the Midwest averaged $3.29 per small square bale (range of $2.25 to $5.00); $37.61 per large square bale (range of $18.75 to $50.00); and $40.00 per large round bale (range of $20.00 to $60.00). Compared to the previous week, straw prices for small square bales were 10% higher. For large square bales, prices were 17% lower. For large round bales, prices were steady.

Hay Price Summary

Hay Grade	Bale type	---------- Price ($/ton) ----------
		Average	Minimum	Maximum
Prime (> 151 RFV/RFQ)	Small Square	262.08	210.00	365.00
	Large Square	310.78	290.00	332.50
	Large Round	277.00	195.00	305.00
Grade 1 (125 to 150 RFV/RFQ)	Small Square	No reported sales
	Large Square	317.50	305.00	330.00
	Large Round	221.67	165.00	290.00
Grade 2 (103 to 124 RFV/RFQ)	Small Square	90.00	90.00	90.00
	Large Square	296.25	292.50	300.00
	Large Round	No reported sales

The next Weekly Hay Market Demand and Price Report for the Upper Midwest will be posted

on May 28.

Due to the drought emergency and the lack of quality-tested hay auctions in Wisconsin, five links are included in this report so producers can get obtain some state prices. The Equity Cooperative market report is at http://livestock.equitycoop.com/market_reports/. Go to the Lomira and Reedsville locations for their reports on hay and straw prices. The Fennimore Livestock Exchange is at

http://www.fennimorelivestock.com/index.php?site=home. The Reynolds Feed & Supply, LLC of Dodgeville is at http://www.reynoldslivestock.com/what1snew/. The Tim Slack Auction and Realty, LLC of Fennimore is at http://www.timslackauctionrealty.com/market%20report.html. The Sheboygan County hay auction at Waldo is back. Results can be found at http://sheboygan.uwex.edu/2012-2013-sheboygan-county-hay-auctions/.

Helpful resources in Wisconsin about the drought:

Extension Responds - Drought 2012: http://fyi.uwex.edu/drought2012/

Farmer to Farmer website: http://fyi.uwex.edu/drought2012/2012/07/20/farmer-to-farmer-website-connects-those-with-feed-for-livestock-to-those-who-need-it/

An electronic neighborhood bulletin board that allows local farmers to get in touch with one another to facilitate the marketing of feed commodities. It has recently been expanded to connect those with productive pastures to those producers who are in need of pastures.

Drought 2012 (DATCP): http://datcp.wi.gov/Farms/Drought_2012/index.aspx

Drought 2012 (Wisconsin Emergency Management): http://ready.wi.gov/drought/default.asp

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Cooperative Extension of the University of Wisconsin-Extension