Hay Prices and Cattle Markets Remain Firm With Good Demand

Hay Prices and Cattle Markets Remain Firm With Good Demand

Drought Monitor Update August 6

Montana Drought Monitor Update, August 6, 2015. Click image to learn more.

As can be expected this time of year, it was a pretty uneventful week on the precipitation front across most of the region, including a quiet monsoon signal across the Desert Southwest. The West remains unchanged this week but the impacts (near-record/record low streamflow, water supply, water temperatures, fire, etc.) are still being felt and are of major concern as we head toward a new water year with September now on the horizon.

For the period August 6 through August 11, monsoon precipitation will again be relatively scarce across the Desert Southwest and the rest of the West will be seasonally dry as well. One significant feature worth noting is that the 8-14 day outlook projects a stronger likelihood of above-normal temperatures across the West.

View the most current Montana conditions from the U.S. Drought Monitor.

Montana Weekly Auction Summary for Week Ending August 7

Market: Billings Livestock, Public Auction Yards, Miles City

Receipts: 1,188; Last Week 997; Last Year NA

Compared to last report: Supply of Feeder cattle this week was very light and consisted of mostly single head lots and a few larger, good quality, groups. CME futures contract prices ended with the August contract at .95 lower to close at 214.975 and September 1.35 lower at 211.475. Throughout the week, Slaughter cows sold firm with good demand. Feeding cows and Cows returning to the country sold very light. Even though supply of Slaughter bulls increased significantly this week, Slaughter bulls sold firm with good demand. The moderate supply consisted of mostly average and high dressing bulls.

Read more from USDA’s latest Montana Weekly Auction Summary.

National Feeder & Stocker Cattle Summary – August 7

Receipts This Week:  Total 341,400 – 104,300 (Auctions); 46,700 (Direct); 190,400 (Video/Internet)

Compared to last week: calves and yearlings sold steady to 5.00 higher with instances up to 10.00 higher across the Midwest and Southern Plains. Last week’s higher fed cattle market caused feeder prices to rebound this week. Demand was good on light to moderate receipts. Cattle futures all turned green on Monday with triple-digit gains of over 3.00 on feeder cattle contracts but, failed to charge ahead the rest of the week. Monday’s rally in the futures was supported by higher fed cattle trade last Friday with ideas that a seasonal bottom has been found.

Short bought packers had some immediate needs to buy fed cattle and hopefully have found a spot where fed cattle prices want to turn around. Cattle futures seem at this time to have many traders on the sidelines taking a wait and see attitude. Feeder cattle prices pretty much are going to be driven by the fed cattle market and if fed cattle have put in a summer low, how much upside potential does the fed cattle market have? The market still needs some kind of news to bring fat cattle up to a level where feeders will make money when finished.

A strong US dollar and continuing to import beef at a good pace; are factors that have bought us to a place where we are moving meat domestically and abroad at a slower pace which has created some excess. The US Jobs report was released Friday morning showing job growth remaining steady with 215,000 jobs added a little below expectations. Signs of slack persist as unemployment remains flat at 5.3%.

Read more from the USDA’s latest National Feeder & Stocker Cattle Summary.

Weekly Montana Hay Report – August 7

Compared to last week: Alfalfa sold steady to 10.00 higher. Grass sold steady. Trade for all types of hay was slow to inactive. Rain throughout the week greened pastures, making buyers less likely to seek out bailed hay. This rain also dampened second cutting forcing producers to bail wet hay. Throughout the coming week, the state is expected to experience mostly clear weather and warm temperatures.

• Alfalfa:
  • Supreme: Small Squares, 210.00-220.00
  • Good: Large Rounds, 150.00-160.00
  • Fair: Large Squares, 115.00-140.00
• Grass:
  • Premium: Large Squares, 125.00-140.00
  • Good: Large Squares, 100.00-120.00
• Timothy Grass:
  • No Market Test

Read more from the USDA’s latest Weekly Montana Hay Report.