Northwest FCS Hay Market Snapshot
Hay supplies in the Northwest remain historically tight that is what the recently quarterly, hay Market Snapshot form Northwest Farm Credit Services reports. Northwest FCS Vice President of Market Research and Development Michael Stolp shares more details.
Stolp: “Prices remain profitable ahead of the new crop year but with weakness in the dairy market and the potential for corn prices, alfalfa prices may go lower. Until most prices return to more profitable levels, hay price increases will be limited. Hay growers expect to remain profitable in 2013. Low hay supplies will help establish the price floor for new crop hay. West Coast hay exports are positioned for additional growth given the bullish exports for Chinese and Middle Eastern markets. Moving concerns for Northwest exporters include the impact of the weakening Yen on the Japanese hay demand and non-competitive shipping costs via Northwest ports.”
The Market Snapshot includes this outlook: The Northwest alfalfa market will remain under pressure heading into the new crop year despite low carryover of old crop and reduced acreage in 2013.
Contributing to a negative undertone in the market, new crop alfalfa in California has been met with prices $20 to $25 per ton lower than last year.
In the Northwest, prices for first cutting supreme to premium alfalfa are projected between $200 and $220 per ton, with feeder hay prices expected between $170 and $190 per ton.
