Market Snapshots on Cattle and Hay

Market Snapshots on Cattle and Hay

Northwest Farm Credit Services has released its quarterly market snapshots on 13 different regional commodities. Field reporter Greg Martin gives an overview of the beef cattle market snapshot for the first half of the year.
Martin: “High cattle prices are projected through 2015, supported by historically low cattle supplies and strong domestic beef demand. U.S. beef exports are expected down slightly in 2015, constrained by the strong U.S. dollar and high prices. Feed costs remain low, capped by forecasts for a strong corn crop, ample feeder hay supplies and stable pasture conditions. Factors for cattle industry attention through yearend include consumer demand, lower beef imports, substitute protein marketing and prices, strength of the U.S. economy and the impact of the U.S. dollar on export activity.”
 April marked the seventh consecutive month of lower beef exports and the fourteenth consecutive month of beef imports higher than beef exports. However, U.S. beef demand is strong. Domestic demand in April rose for the fifteenth consecutive month, rising 5.1 percent above the prior year.
Martin continues with the hay market snapshot synopsis.
Martin: “Tight supplies of high quality alfalfa will be met with the strongest demand in 2015, but dairies and exporters are likely to keep downward pressure on prices. Fewer acres in production and persisting drought across much of the Western U.S. should result in lower levels of hay production in 2015. This should help the industry work through the currently robust level of hay stocks, but the sheer volume of lower quality hay in the market will continue to weigh on feeder hay prices. Grower profitability is  
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