Beef and Hay Market Snapshot

Beef and cattle prices continue to post new highs. Northwest FCS Knowledge Center’s Matthew Kloes gives an update on the region’s beef industry.
Kloes: “Cattle and beef markets remain strong. Prices for most classes of cattle are at record highs, while U.S. and export consumers continue to pay record prices for beef. In response, cattle producers are increasing heifer retention. This signals the likelihood of herd expansion, but tighter fed cattle supplies ahead. Short supplies and strong demand will continue to support cattle and beef prices, but buyers may become resistant to additional price increases.”
U.S. cattle imports rose 5.0 percent in the first quarter of 2014 compared to 2013. Strong prices in the U.S. for cattle have Canadian producers shipping cattle south. Imports of Canadian cattle are up 12 percent in 2014. Imports from Mexico have decreased 2.0 percent this year despite high prices.
Kloes continues by saying that tight supplies and strong demand point to a profitable season for Northwest hay producers.
Kloes: “Northwest hay prices started out strong this season. Persisting shortages of quality alfalfa created a pent up demand from Northwest and California dairies and exporters. Market fundamentals suggest strong hay prices for the remainder of the season. Although the majority of Northwest hay producers have experienced favorable harvest conditions and good crops to date, supplies are likely to remain tight due to low beginning stocks, drought in California and areas of the Northwest, and a slight reduction in hay acres.”