August 8, 2015 Comments are off Montana Stockgrowers Association
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Hay Prices and Cattle Markets Remain Firm With Good Demand

Drought Monitor Update August 6

Montana Drought Monitor Update, August 4, 2015.

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.

August 1, 2015 Comments are off Montana Stockgrowers Association
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Rain Brings Slight Drought Relief, Hay Prices Hold Firm

Drought Monitor Update July 30

Montana Drought Monitor Update, July 30, 2015. Click image to learn more.

Frontal rains and leftover moisture from Hurricane Dolores brought above-normal precipitation to parts of California, Nevada, Montana, and the Pacific Northwest this week. The heavier rainfall amounts ranged from half an inch to 2 inches, with less than half an inch common. This is the dry season for the Far West, so even minor amounts of rain equate to well above normal.

A frontal low near the end of the week gave parts of Montana 3+ inches of rain, resulting in contraction of D0-D2 east of the Rockies. The lack of mountain snowpack has contributed to record and near-record low streamflows across much of the Pacific Northwest, with tinder-dry conditions resulting in the closing of the forests in northern Idaho.

Pasture and range conditions were rated poor to very poor across 47% of Oregon, 41% of Washington, and 14% of Idaho, which were slight increases compared to the previous week. Crop harvesting continued, and while most crops were in fair to good condition across the region, 32% of the winter wheat crop in Oregon was rated in poor to very poor condition.

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

Montana Direct Feeder Cattle Report for Week Ending July 31

Market: Billings Livestock, Public Auction Yards

Receipts: 1,225; Last Week 0; Last Year 550

Compared to last week: Downward pressure put on the feeder market due to a lack of support from Live Cattle contracts has limited demand for calves and feeders. Supply consisted of 100 percent over 600 lbs and 16 percent heifers. Steers – 925 lbs. @ $204.90 Current FOB. Heifers – 535 lbs. @ $233.00 October FOB

Read more from USDA’s latest Montana Feeders Cattle Report.

National Feeder & Stocker Cattle Summary – July 31

Receipts This Week:  Total 144,500 – 106,100 (Auctions); 36,900 (Direct); 1,500 (Video/Internet)

Compared to last week: lower prices continued in the feeder cattle markets as feeder cattle and calves traded mostly 5.00-10.00 lower. Auction receipts were mostly light this week due to the hot temperatures and high humidity causing high heat index levels of near and over 110 degrees in areas across the Midwest and Southern Plains. Receipts for the most part continue to be dominated by yearling cattle over 700 lbs which is where the best demand exists at this time. Demand remains moderate to good with best demand in the Northern Plains for yearlings.

Last week and into Monday of this week Live Cattle and Feeder Cattle contracts took a pounding as long term bulls were nowhere to be found. The cattle complex did finally pull off a positive day of trading on Tuesday with triple-digit gains that extended with modest gains into Wednesday. But, the sometimes upside potential has no sense of urgency to rally much higher anytime soon. Pretty much everybody in the industry knows expansion is well underway, but it will be over a year before many of the heifers retained will calve.

A strong US dollar and weaker export demand from the Pacific Rim countries especially Hong Kong and Japan have beef exports struggling; also beef exports to Mexico have been laboring as well. Competing meat prices are strikingly lower than year ago levels as pork prices hit their all-time highs last summer during the PEDv outbreak and chicken prices were also stronger last year. Corn crop is now rated 70% good to excellent up 1% from last week, with 78% in the silking stage. Corn prices have moved lower this week as favorable weather is in the forecast for the next week.

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

Weekly Montana Hay Report – July 31

Compared to last week: Alfalfa was steady to firm this week on increased demand across the state. Interest for all hay continues to increase as drought conditions continue across eastern and western Montana, as well as, along the highline. Hay marketed locally was steady this week, while hay to ship to dry locations pushed prices higher. Demand for alfalfa is mostly moderate and moderate to good in some drier locations.

Grass hay held steady after many farmers raised prices last week. Many parts of the state are in the middle of cutting second cutting. Drought conditions eased some this week with 35.69% of the state in Moderate to Extreme drought as of Thursday’s report. That’s a 6.62% decline from last week after spotty, light rain showers fell across the state.

  • Alfalfa:
    • Supreme: Small Squares, 200.00-210.00
    • Good: Large Squares, 150.00-200.00; Large Rounds, 150.00-160.00
    • Fair: Large Squares, 115.00-140.00
  • Grass:
    • Good: Large Rounds, 100.00
    • Large Squares, 100.00-120.00
  • Timothy Grass:
    • Premium: Small Squares, 210.00.
    • Good: Large Round, 120.00

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

July 26, 2015 Comments are off Montana Stockgrowers Association
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Montana Pasture Conditions Deteriorate, Heifer Inventory Up 7 Percent

Drought Monitor Update July 23

Montana Drought Monitor Update, July 7, 2015. Click image to learn more.

Montana Drought Monitor Update, July 21, 2015. Click image to learn more.

In the Pacific Northwest, above average temperatures and precipitation deficits continue to mount across the region with growing concern about potential crop losses in central and eastern Washington. According to the NCEI climatological rankings, the contiguous U.S. average temperature for June was the second hottest in the observational record (1895–2015). On a state level, California, Idaho, Oregon, Utah, and Washington all experienced their hottest average-temperature Junes on record since 1895.

During the past week, average temperatures were below normal across much of the West with the exception of western portions of California and Oregon, eastern New Mexico, and Washington. Elsewhere, statewide reservoir storage is above average in Colorado, Idaho, Montana, and Wyoming.

The NWS WPC 7-Day Quantitative Precipitation Forecast (QPF) calls for generally dry conditions across most of the western U.S. with the exception of some modest accumulation (one-to-two inches) in northern portions of the Great Basin, northern Rockies, and North Cascades.

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

Montana Weekly Auction Summary for Week Ending July 24

Market: Billings Livestock, Public Auction Yards

Receipts: 997; Last Week 603; Last Year NA

Compared to last week: This report was not released last week due to closed markets at Billings Livestock commission and Miles City, thus no trend is available. Feeder cattle this week were mostly average to attractive quality and sold with light to moderate demand. Larger feeders coming off grass sold with the best demand as they were in light flesh and feedlot ready. Several smaller consignments of fall born un-weaned calves were offered this week with many selling at a discount to long time weaned calves.

CME futures contract prices tumbled throughout the week with the August contract down 5.875 to close at 209.775 and September down 6.40 to close at 207.625 as of Thursday night’s settlement.

Weigh-up cows sold with light demand this week on light to moderate offerings. Packer buyers were very light handed this week as they bid on cows. Large reductions in kill continue to help stabilize the cow market as harvest is currently running 4-10 percent below year ago levels. Feeding cows sold with lighter demand as well this week. There was no push from any direction and cows slid lower as a result. Quality this week was mostly average. Many cows were full and fleshy coming off grass which gave buyers another reason to pass on offerings.

Many bulls are coming off breeding season and are in very light to light flesh. Packer buyers were forced to compete with feeding bull buyers for light weight and very lightly fleshed bulls. 2-3 year old cows sold on very light demand this week for very light offerings.

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

National Feeder & Stocker Cattle Summary – July 24

Receipts This Week:  Total 162,600 – 93,700 (Auctions); 29,000 (Direct); 39,900 (Video/Internet)

Compared to last week: the downtrend continues in the feeder cattle markets as feeder cattle and calves traded unevenly steady to 5.00 lower early in the week turning mostly 7.00-10.00 lower from midweek on. Long liquidation selling and feeder cattle futures looking at sharply lower feeder cattle index pressured prices. The feeder cattle market is starting to break hard over the last several weeks and keeps buyers and sellers on the defensive and more conscious of bearish fundamentals. Prices paid for feeder cattle up till now for the most part have been very good for the backgrounder and the cow/calf man. But break evens are so distant that it’s looking impossible for any results to be positive for the cattle feeder.

Northern Livestock Video out of Billings, MT held a three-day video auction this week selling over 93,000 head of top quality feeder calves and yearlings. Some of the top prices paid included 585 head of value added (all Natural) yearling steers weighing 950 lbs sold for 230.00 for November delivery. There was near 3000 head of 900-950 lb steers averaging 910 lbs that sold with a weighted average price of 216.84 for September delivery.

Boxed-beef prices have reached their lowest levels since June 2014, as Choice product on Friday closed down 1.89 at 230.70. The market has been worried about consumer beef demand for a long time with concerns over increasing meat supplies of pork and chicken. Retail prices for June saw beef values hit an all-time high with the average price for all beef sold at retail averaging 6.11/lb.

The July 1st Cattle Inventory Report was released on Friday showing ranchers expanding the cattle herd for the first time since 2006. All cattle and calves came in at 98.4 million head, 2 percent higher than a year ago.

Highlights included:

  • Beef cows at 30.5 million head, up 3 percent from a year ago;
  • Replacement heifers were at 4.90 million head, up 7 percent;
  • Steers over 500 lbs 14.1 million head, up 3 percent.

The 2015 calf crop is expected to be 34.3 million head, up 1 percent from last year. Cattle on Feed Report was mostly neutral to slightly bearish with Cattle on Feed for July 1st at 102 percent; Placements at 101 percent were larger than expected; Marketings were at 95 percent.

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

Weekly Montana Hay Report – July 24

Compared to last week: Alfalfa was fully steady this week as market participants have set prices and began to fully establish the market. Demand for Alfalfa is mostly moderate and moderate to good in some drier locations. Farmers are continuing to hold on to hay supplies in the hopes that prices will improve as the western drought continues to creep east. Dry conditions in extreme eastern and western Montana, as well as, along the highline, have deteriorated many pasture and range conditions. This has forced some ranchers to purchase hay as a supplemental feed. Grass hay especially has benefited from this as prices edged higher this week. Many parts of the state are starting with second cutting, however rain forecasted for Sunday has some waiting until next week to cut.

  • Alfalfa:
    • Supreme: Small squares, 200.00-210.00
    • Good: Large squares, 150.00
    • Fair: Large squares, 115.00-135.00
  • Grass:
    • Good: Large Rounds, 90.00-100.00
    • Large Squares, 100.00-120.00
  • Timothy Grass:
    • Premium: Small Squares, 180.00.
    • Good: Large Round, 120.00

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

July 11, 2015 Comments are off Montana Stockgrowers Association
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Extreme Drought Introduced in West, Futures Markets Struggle

Drought Monitor Update July 9

Montana Drought Monitor Update, July 7, 2015. Click image to learn more.

Montana Drought Monitor Update, July 7, 2015. Click image to learn more.

Most of the region was warm during the last week with temperatures 9-13 degrees above normal in the Pacific Northwest and 3-4 degrees above normal over most of the rest of the region. Idaho, Utah, Washington, Oregon, and California all had their warmest June ever (121 years of data) while Nevada had their second warmest, Wyoming their fourth warmest, and Montana their fifth warmest.

In Montana, D3 was introduced in the west while D2 expanded to the east. In the north central portions of Montana, D1 and D0 were expanded slightly. These changes were mainly in response to the rapid short-term degradation and the impact to agriculture in Montana.

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

Montana Weekly Auction Summary for Week Ending July 10

Market: Billings Livestock, Public Auction Yards, Miles City

Receipts: 1,679; Last Week NA; Last Year NA

Compared to last week: Due to no coverage of sales in recent weeks a market trend is not available. Feeder cattle receipts were limited this week, however attractive quality feeder cattle continue to sell with very good demand.

CME futures contract prices have struggled throughout the week. August contracts closed down 5.225 at 211.75 and September closed down 5.345 to close at 210.225 as of Thursday night’s settlement. However, the CME feeder cattle index hasn’t budged this week. The current index value is pegged at 220.39 as of Wednesday’s sales, which is a strong premium to the August CME contract.

A heavy offering of Bulls was seen this week as many ranchers are beginning to bring cull bulls to town after breeding season. With plenty of grass in central Montana many bulls were in light to moderate flesh, however eastern Montana has been very dry and with less grass to forage on many bulls in that part of the state were in very light to light flesh. A large portion of lightly fleshed bulls were being purchased to put on feed, this created an active market and good demand as feeding buyers and packer buyers sparred over offerings.

Buyers searching for breeding stock purchased 2 year olds to young age cows on light demand this week. Heiferettes and young age cows were of mostly average quality giving buyers no reason to bid aggressively. Cow/calf pairs sold on good to very good demand this week. Quality was mostly attractive with very large calves at cows sides and several offerings already exposed to bulls.

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

National Feeder & Stocker Cattle Summary – July 10

Receipts This Week:  Total 205,900 – 98,000 (Auctions); 48,800 (Direct); 59,100 (Video/Internet)

Compared to last week: a light test of feeder cattle did not quite produce the “ooohs and ahhhs” heard immediately after the 4th of July fireworks with yearling feeders trading mostly steady to instances 3.00 lower. There has been significant volatility throughout the markets over last week and this week. Cattle futures have mixed underlying fundamentals and traded with sharp triple-digit losses on Wednesday as feeder cattle contracts traded over 3.00 lower. Superior Video’s Week in the Rockies this week featured 260,000 head of calves and yearlings being sold with the final results to be out on Monday.

We are starting to see an increase in volatility in the markets which is a pretty good sign that they want to move from their current levels especially in the grains. Grains are looking to move higher as excessive amounts of moisture through the Midwest and eastern Cornbelt have in some areas seen crop conditions deteriorate over the last several weeks. No doubt the debate will start over grain numbers; how widely varying crop conditions have developed throughout many important production areas.

The cattle complex seems to want to move lower and keeps testing some overhead resistance, but last week packers scrambled to secure inventory paying higher prices and building on that support seen last week to buy fed cattle this week mostly steady on live prices ranging mostly from 150.00-152.00.

  • Auction Receipts: 98,000; Last Week: 67,000; Last Year: 190,700
    • Montana 1,700. 87% over 600 lbs. 20% heifers. Steers: Medium and Large 1 700-750 lbs (707) 244.77.
      • Direct receipts 4,000. 100% over 600 lbs. 19% heifers.

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

Weekly Montana Hay Report – July 10

Compared to last week: Most every part of the state has first cutting down and many have it in the stack. Hay quality has been less than impressive with most struggling to break 155 RFV. Very little dairy quality hay has been put up as a result. This has put heavy supplies of feeding hay on the local market and many are struggling to find a selling point. Many farmers have decided to hold on to supplies to see how dry conditions in Western and far Eastern parts of the state play out in the future. Very few reported sales were made this week as a result.

  • Alfalfa:
    • Supreme: Small squares, 200.00-210.00
    • Good: Large squares, 150.00
    • Fair: Large squares, 110.00-115.00
  • Grass:
    • Good: Large Rounds, 90.00-100.00
    • Large Squares, 100.00
    • Timothy Grass: Premium: Small Squares, 180.00.
  • Straw:
    • Large Squares and Rounds, 35.00-40.00.

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

July 4, 2015 Comments are off Montana Stockgrowers Association
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Severe Drought Moves In, Sparks Fly in Cattle and Grain Futures

montana drought monitor June 30

Montana Drought Monitor Update, July 2, 2015. Click image to learn more.

Drought Monitor Update July 2

A  strong ridge over the west and a deep trough over the east dominated the weather this past week. Record high temperatures were recorded over much of the west, with many locations reaching temperatures in the 110 degree range during the week. The heat along with very dry conditions over the last 30 days has elevated the fire risk over much of the west.

Record heat and dryness over the region this week as well as over the last month has quickly deteriorated conditions in many areas after a wet May. A large degradation of drought in Montana was made this week with a full category change in the areas of western and north central Montana.

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

National Feeder & Stocker Cattle Summary – Week Ending July 3

Receipts This Week: 127,900 Total – 67,000 (Auctions); 28,600 (Direct); 32,300 (Video/Internet)

Compared to last week: there was some early fireworks show on this holiday shortened week with a volatile ride in the cattle futures and major moves in the grain trade. Several auctions held special yearling sales this week.

Cattle futures posted a strong rally on Wednesday after “Gloom and Doom” on Tuesday with Live Cattle contracts limit higher and Feeder Cattle contracts getting back most their limit losses from the day before as order buyers received a green light to do business.

The spark that got the fireworks started was USDA’s Grain Stocks Report on Tuesday with all grains trading sharply higher with September corn trading 30 cents higher, August soybeans 55 cents higher and wheat ranging from 28-32 cents higher. Corn stocks came in under average estimates of 4.555 bb fell to 4.465 bb with estimated corn acres at 88.9 million acres, about 2 percent lower than last year’s planted acres. This would be the lowest planted corn acres since 2010 and the thought that a “big crop could get smaller” shook the confidence of the bear. Corn stocks are not in a tight situation but the market is becoming somewhat nervous due to the wet weather problems across the Midwest. This summer has seen some of the highest rainfall totals on record in key growing states potentially drowning out production.

  • Auction Receipts: 67,000; Last Week: 130,100; Last Year: N/A
    • Montana Not enough feeder cattle sales to report
    • Superior Livestock Video – 18,000; 42% over 600 lbs., 41% heifers.
      • Steers: Medium and Large 1 Current few load 775 lbs 233.00; few load 800 lbs 230.00; load 875 lbs 217.50.
      • Heifers: Medium and Large 1 Current 750-800 lbs (765) 218.70; Jul load 765 lbs 210.50; Aug few loads 765 lbs 207.00.

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

Weekly Montana Hay Report – July 3, 2015

Compared to last week: Trade activity is slow on light demand. Warmer, drier conditions are improving demand from the Northwest region of the state and the ability to put up higher quality hay in other areas.

  • Alfalfa:
    • Good: Large squares, 150.00; Round bales
  • Alfalfa/Grass
    • Fair: Round, 110.00
  • Grass:
    • Premium: Small squares, 180.00
    • Good: Round bales, 100.00

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

June 27, 2015 Comments are off Montana Stockgrowers Association
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Drought Moves East, Ranchers Retaining Heifers | June 27 Montana Markets

Drought Monitor Update June 23

montana drought monitor june 23 2015Little precipitation fell from the Rockies westward to the Pacific Coast last week. Overall, there was little change in conditions except along the northern tier of states from Montana westward through Washington and Oregon. Continued dryness and exceptionally hot weather kept dryness and drought increasing most significantly across eastern Washington, central and northern Idaho, and western Montana. These areas recorded generally 6 to 12 inches less precipitation than normal in the last 6 months, and less than half of normal amounts in the last 60 days.

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

National Feeder & Stocker Cattle Summary – Week Ending June 27, 2015

Receipts This Week: 254,800 Total – 130,100 (Auctions); 65,500 (Direct); 59,200 (Video/Internet)

Compared to last week: yearling feeder cattle sold mostly steady with spots 2.00 higher to 2.00 lower.  Steer and heifer calves traded steady to 5.00 lower throughout auctions in the Midwest and the Southeast.

The Northern Livestock Video’s Early Summer Special featured over 40,000 head of some of the fanciest cattle that walk the outdoors on Monday and Tuesday.  Many high-country ranchers are adding value by preserving their cattle’s all-natural or NHTC status with near 1300 head of value added steer calves weighing between 500-550 lbs averaging 519 lbs sold with a weighted average price of 307.03 for November delivery. In addition, three loads of value added current delivery steers averaging 825 lbs sold for 243.00. It was also noted that Montana and Wyoming ranchers are aggressively rebuilding their herds with only 26 percent of sales being heifers. Strings of yearlings will soon be moving off double-stocked pastures in the major grazing regions and the dog days of summer will soon be upon us right as consumer beef demand usually suffers its post July 4th hangover.

Last Friday’s Cattle on Feed report was viewed as neutral to slightly bullish as placements were down near 10 percent compared to year ago levels. Feedlots in most cases continue to face stiff competition from farmer/feeders with plenty of corn on hand, backgrounders and grass operations.

  • Auction Receipts: 130,100; Last Week: 118,900; Last Year: 151,000
    • Montana Not enough feeder cattle sales to report
    • Northern Livestock Video: 40,400. 48 pct over 600 lbs. 26 pct heifers.

Read more from the USDA’s June 27 National Feeder & Stocker Cattle Summary.

Weekly Montana Hay Report – June 27, 2015

Compared to last week: Trade activity is slow on light demand. Scattered showers across the region are adding to difficulty in 1st cutting production. Improved demand on Dairy quality and export hay. Light demand on cow hay due to Moderate to Heavy supply in the country. This week the US drought monitor again increased the land area in abnormally dry and moderate drought status. Most of this land is in the northwest and southwest corners of the state, where the western drought has inched its way east.

  • Alfalfa:
    • Good: Large squares, 140.00; Round bales, 120.00
    • Fair: Large squares, 90.00-130.00
  • Grass:
    • Premium: Small squares, 180.00
    • Good: Large squares, 120.00
    • Fair: Round bales, 110.00

Read more from the USDA’s June 27 Weekly Montana Hay Report.

June 20, 2015 Comments are off Montana Stockgrowers Association
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Cattle on Feed Up 1 Percent, Montana Markets Week Ending June 20

Cattle on Feed – June 19

Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.6 million head on June 1, 2015. The inventory was 1 percent above June 1, 2014. Placements in feedlots during May totaled 1.71 million, 10 percent below 2014. Marketings of fed cattle during May totaled 1.71 million, 8 percent below 2014. May marketings are the lowest since the series began in 1996. Other disappearance totaled 82,000 during May, 19 percent below 2014.

Read more from the USDA’s June 20 Cattle on Feed report.

Montana Weekly Auction Summary for Week Ending June 20, 2015

Market: Billings Livestock Commission, Public Auction Yards

Receipts: 2,572; Last Week 2,924; Last Year NA

Compared to last week: Compared to last week: Feeder cattle were all too lightly tested for an accurate market trend. Feeder cattle were of mostly average quality, with many plain made offerings. Demand for feeder cattle was good to very good on all offerings. Limited feeder availability has many buyers fighting over offerings causing limited sales to inch higher.

CME futures contract prices struggled throughout the week. August contracts closed down 1.975 at 221.925 and September closed down 1.675 to close at 220.275 as of Thursday night’s settlement. This didn’t slow down buyers across the country as the 7 day running average CME feeder cattle index closed at 225.73 as of Wednesday’s sales (the latest available settlement), which is a premium to the August CME contract.

Weigh-up cows sold with moderate demand this week on moderate offerings. Quality this week was mostly average with a few small strings of attractive cows. Slaughter cows were too lightly tested again this week to develop an accurate market trend, however unevenly steady undertones abounded throughout the week. Order buyers continue to sustain the market this week as demand for feeding, breeding, and grass cows helped hold prices fully steady. Packer buyers bought cows on increased demand from last week, however slaughter cows continue to sell with light demand.

Buyers searching for breeding stock purchased 2 year olds to young age cows on light to moderate demand this week. Heiferettes and young age cows sold steady to lower with many buyers taking a step back and filling orders on an as need basis. Many buyers picked through offerings and bid on only higher quality cattle causing wide price spreads within age groups. Cow/calf pairs sold on very good demand this week, with Billings Livestock offering around 500 head of pairs. Quality was mostly attractive with many ranchers in the stands actively bidding on offerings.

Read more from USDA’s June 19 Montana Weekly Auction Summary.

National Feeder & Stocker Cattle Summary – Week Ending June 19, 2015

Receipts This Week: 176,700 Total – 118,900 (Auctions); 54,800 (Direct); 3,000 (Video/Internet)

Compared to last week: yearling feeder cattle sold steady to 3.00 higher with steer and heifer calves trading steady to instances 5.00 higher on a light test throughout the Midwest. Demand was good for all classes of feeder cattle, with the possible exception of fleshy/short weaned steer calves weighing between 600-700 lbs. Feeder cattle continue to hold up remarkably well despite these bearish fundamentals with many farmer/feeders in the market and no shortage of grass out in the country.

Boxed-beef values have strengthened this week with the 4th of July just around the corner this should have retailers looking to fill shelves with Father’s Day this weekend hopefully will be good test for beef demand. Will cut-out values hold up into the summer months of July and August is a concern as usually beef demand has a tendency to be lackluster during this time period? Packers continue to keep slaughter levels small to help stabilize cut-out values and increase their margins rather than dip into the red to bid higher on slaughter cattle.

Tropical Storm Bill is adding much unwanted heavy rains to already saturated fields from east Texas up through the Ohio River Valley.  Corn is likely looking at acres that will be lost or limited in production which has supported corn and soybean prices this week.  Monday’s progress report had corn 91 percent emerged and 73 percent rated good to excellent.  Soybeans roughly have around 11 million acres left to be panted with around 7 million of those acres in states that are very wet.

  • Auction Receipts: 118,900; Last Week: 168,500; Last Year: 142,700
    • Montana 2,600. 74 pct over 600 lbs. 68 pct heifers.
    • Steers: Medium and Large 1 650-700 lbs (676) 256.80; pkg 835 lbs 220.00.
    • Heifers: Medium and Large 1 550-600 lbs (569) 256.53; 600-650 lbs (617) 246.51; half load 645 lbs 243.00; 700-750 lbs (740) 220.11; part load 870 lbs 197.00.

Read more from the USDA’s June 20 National Feeder & Stocker Cattle Summary.

Weekly Montana Hay Report – June 19, 2015

Compared to last week: First cutting is under way as many farmers are trying to dodge rain showers in order to get first cutting down. Rain showers fell throughout much of the week in central and southern Montana, giving added moisture to pasture and range, but providing a slight nuisance to farmers trying to put up hay. Hay supplies are nearly depleted for all very high quality alfalfa hay. However, there remains some middle of the road old crop hay that continues to move at steady money. Demand for Alfalfa hay continues to be light.

This week the US drought monitor increased the land area in abnormally dry and moderate drought status. Most of this land is in the northwest and southwest corners of the state, where the western drought has inched its way east. Light demand was seen for grass hay marketed within the state as steady prices move hay on an as need basis. Good demand was seen for hay to ship to other areas of the country, particularly drier regions, both east and west.

  • Alfalfa:
    • Supreme: Small squares, 200.00
    • Good: Large squares, 120.00-130.00; Small squares, 138.00-150.00
    • Fair: Large squares, 90.00-130.00
  • Grass:
    • Good: Large Rounds, 90.00-100.00; New crop contract, 110.00-120.00; Large Squares, 100.00
  • Timothy Grass:
    • Premium: Small Squares, 240.00.
    • Good: Small Squares, 160.00-180.00.
  • Straw:
    • Large Squares and Rounds, 35.00-40.00

Read more from the USDA’s June 20 Weekly Montana Hay Report.

June 13, 2015 Comments are off Montana Stockgrowers Association
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Montana Cattle Markets Week Ending June 13

Montana Weekly Auction Summary for Week Ending June 13, 2015

Market: Billings Livestock Commission, Miles City, Public Auction Yards

Receipts: 2,924; Last Week 3,312; Last Year NA

Compared to last week: Feeder cattle were all too lightly tested for an accurate market trend. Feeder cattle were of mostly average quality, with mostly plain made offerings. Demand for feeder cattle was good on all offerings. CME futures contract prices higher for the week with the August contract up 3.40 closing at 226.25 and September up 3.00 closing at 224.35 as of Thursday night’s settlement. The 7 day running average CME feeder cattle index closed at 225.74 as of Wednesday’s sales (the latest available settlement).

Weigh-up cows sold with light to moderate demand this week on moderate to heavy offerings. Slaughter cows were too lightly tested again this week to develop an accurate market trend, however lower undertones abounded throughout the week. Feeding cow buyers helped sustain the market this week as demand for feeding and breeding cows helped hold prices fully steady. Feeding and breeding buyers sustained prices above where packers showed interest to purchase cows. This pushed packers to purchase older, lower yielding cows to complete their orders. Quality this week was mostly average to attractive with a few long strings of very attractive cows.

Buyers searching for breeding stock purchased 2 year olds to young age cows on very good demand this week. Heiferettes and young age cows sold sharply higher with many buyers looking for replacement cows to both ship to the southern plains as well as to rebreed and fill local pastures. Many of these fancy offerings sold for over 2,100.00 per head. Cow/calf pairs saw strong demand again this week. Notably, most offerings were of better quality this week than last.

Read more from USDA’s June 12 Montana Weekly Auction Summary.

National Feeder & Stocker Cattle Summary – Week Ending June 13, 2015

Receipts This Week: 162,400 Total – 104,000 (Auctions); 36,700 (Direct); 21,700 (Video/Internet)

Compared to last week: a good test of yearling feeder cattle sold steady to 3.00 higher with instances 5.00-7.00 higher from mid-week on.  Feeder cattle buyers continue to battle in the ultra-competitive yearling market; especially in the Southern Plains. Northern buyers continue to help drive the yearling market as last Friday, Fort Pierre Livestock Auction in Fort Pierre, SD sold near 11,000 head with almost 600 head of steers weighing 600-650 lbs sold with a weighted average weight of 615 lbs averaged 288.10 and over 1000 head of 900-950 lb steers averaging 929 lbs sold with a weighted average price of 215.01.

CME cattle futures rallied higher on Monday despite last week’s very limited to lower cash trade and again closed with strong gains on Tuesday as Boxed-beef values surged.  This week’s auction volume included 56 percent over 600 lbs and 39 percent heifers.

  • Auction Receipts: 168,500; Last Week: 153,900; Last Year: 154,8000
    • Montana 2,900. 45 pct over 600 lbs. 78 pct heifers.

Read more from the USDA’s June 12 National Feeder & Stocker Cattle Summary.

Weekly Montana Hay Report – June 12, 2015

Compared to last week: Very little has changed this week as many farmers are in the fields cutting first cutting. Scattered rain showers on Wednesday rained on many fields of cut hay in the Yellowstone river valley, however much of the rest of the state was spared.

Contracts for dairy quality hay have yet to be made as many of the western diaries are waiting on first cutting to get a better feel of supplies. Demand for Alfalfa hay continues to be light. Scattered rain showers helped much of the state improve moisture conditions. This week the US drought monitor shrank the land area in Montana that was in “abnormally dry” status from 34 percent to 26 percent. Light demand was seen for grass hay marketed within the state as steady prices move hay on an as need basis. Good demand was seen for hay to ship to other areas of the country, particularly drier regions, both east and west.

  • Alfalfa:
    • Supreme: Small squares, 200.00
    • Premium: Large squares, 150.00-155.00
    • Good: Large squares, 120.00-130.00; Small squares, 138.00-150.00
    • Fair: Large squares, 90.00-130.00
  • Grass:
    • Good: Large Rounds, 90.00-100.00; New crop contract, 110.00-120.00; Large Squares, 100.00
  • Timothy Grass:
    • Premium: Small Squares, 240.00.
    • Good: Small Squares, 160.00-180.00.
  • Straw:
    • Large Squares and Rounds, 35.00-40.00

Read more from the USDA’s June 12 Weekly Montana Hay Report.

May 30, 2015 Comments are off Montana Stockgrowers Association
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Limited Cattle Offerings in Holiday Week – Montana Markets Week Ending May 30

Montana Weekly Auction Summary for Week Ending May 30, 2015

Market: Billings Livestock Commission, Miles City, Public Auction Yards

Receipts: 4,247; Last Week 2,606; Last Year NA

Compared to last week: Feeder cattle were all too lightly tested last week for an accurate market trend, however higher undertones abounded. Feeder cattle were of average to attractive quality this week, with a few consignments of very attractive cattle. Demand for feeder cattle this week was good to very good at times.

CME futures contract prices have gained every day since last Thursday. Starting Tuesday August contracts gained 5.35 to close at 224.95 and September gained 4.725 to close at 223.25 as of Thursday nights close. The 7 day running average CME feeder cattle index closed at 222.45 as of Wednesday’s sales (the latest available settlement). The CME index has trended higher all week as CME futures prices give support to buyers bidding in sale rings across the 12 state region.

Limited offerings of feeder cattle in recent weeks have buyers worried of the volume of cattle left in the country side and many bid accordingly pushing all feeders higher this week. Of note, some buyers this week were particularly aggressive in purchasing 600-750 lbs heifers and in many cases were willing to pay replacement price or even above replacement price in order to fill feedlot orders.

Weigh-up cows sold with good to very good demand this week on mostly moderate offerings. Slaughter cows sold generally steady to firm on all classes offered this week. Feeding cows sold mostly firm. Weight-up cows are seeing demand from slaughter, replacement, and feeding cow buyers which has yet again pushed all cow prices higher. Packer buyers continue to buy cows to put on feed again this week as many are hoping to help curb shorted summer supplies.

Young aged 2-3 year olds sold sharply higher with many buyers looking for replacement cows to both ship to the southern plains as well as rebreed and fill local pastures. With heavy rainfall at times this week many buyers were very aggressive in bidding as pasture and range conditions are in great shape in and around the Yellowstone river valley. Cow/calf pairs saw much of the same strong demand as many local ranchers were in the stands this week actively bidding. Middle age (solid mouth) and aged (broken mouth) cows sold on the best demand again this week with ranchers searching for short keep cows to run on grass this summer.

Read more from USDA’s May 29 Montana Weekly Auction Summary.

National Feeder & Stocker Cattle Summary – Week Ending May 29, 2015

Receipts This Week: 162,400 Total – 104,000 (Auctions); 36,700 (Direct); 21,700 (Video/Internet)

Compared to last week, a light holiday test of yearlings and calves sold fully steady to 5.00 higher. The official start to the summer grilling season was followed by continued good demand for all classes and in many cases no signs of top-side pressure. Many major early–week auctions were idle this week, but buyers picked up where they left off at mid-week sales, as demand remains very good for calves and yearlings. Calve markets continue to trade on limited supplies with enough localized demand to offset supplies. The best advance continues to be on the heavier yearlings over 800 lbs as demand remains very good on yearlings.

  • Auction Receipts: 104,000 Last Week: 168,000 Last Year: 111,800
    • Montana 4,200. 78 pct over 600 lbs. 54 pct heifers.

Read more from the USDA’s May 29 National Feeder & Stocker Cattle Summary.

 

Weekly Montana Hay Report – May 29, 2015

Compared to last week:  No changes were seen this week as farmers continue to wait on first cutting. No new contracts have yet to been seen for western dairy hay. Demand for Alfalfa hay is light on very light supplies. Many parts of central Montana received between 1.0 to 3.0 inches of additional rain this week which helped improve both pasture and range conditions as well as hay crop conditions.

Many ranchers in the Central and Eastern parts of the state have turned cattle out for the summer which has further lightened demand for grass hay. Ranchers buying hay to stock has slowed to a near halt with rain curbing drought concerns. Light demand was seen for grass hay marketed within the state, however steady prices continue to move light supplies. Good demand was seen for hay to ship to other areas of the country, particularly drier regions, both east and west.

  • Alfalfa
    • Supreme: Small squares, 200.00
    • Premium: Large squares, 150.00-155.00
    • Good: Large squares, 120.00
    • Small squares, 138.00-150.00
    • Fair: Large squares, 90.00-130.00
  • Grass:
    • Good: Large Rounds, 90.00-100.00;
    • New crop contract, 110.00-120.00; Large Squares, 100.00
  • Timothy Grass:
    • Premium: Small Squares, 240.00.
    • Good: Small Squares, 160.00-180.00.
  • Straw:
    • Large Squares and Rounds, 35.00-40.00.

Read more from the USDA’s May 29 Weekly Montana Hay Report.

May 23, 2015 Comments are off Montana Stockgrowers Association
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Cattle on Feed Up 1 Percent, USDA Montana Reports Week Ending May 23

United States Cattle on Feed Up 1 Percent

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Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.6 million head on May 1, 2015. The inventory was 1 percent above May 1, 2014.

Placements in feedlots during April totaled 1.55 million, 5 percent below 2014. Net placements were 1.48 million head.

During April, placements of cattle and calves weighing less than 600 pounds were 320,000, 600-699 pounds were 240,000, 700-799 pounds were 348,000, and 800 pounds and greater were 640,000.

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Marketings of fed cattle during April totaled 1.64 million, 8 percent below 2014. April marketings are the lowest since the series began in 1996.

Other disappearance totaled 66,000 during April, 20 percent below 2014

Read more from the USDA’s May 22 Cattle on Feed report.

 

 

Montana Weekly Auction Summary for the week ending May 23, 2015

Market: Billings Livestock Commission, Miles City, Public Auction Yards

Receipts: 2,606; Last Week 5,452; Last Year 2,671

Compared to last week: Feeder cattle were all too lightly tested this week for an accurate market trend. Feeder cattle were of mostly plain and average quality this week, with a few small packages of attractive cattle scattered throughout the sales. Demand for feeder cattle continues to be moderate to good, however demand for high quality feeders is good to very good on very light offerings.

Weigh-up cows sold with good to very good demand this week on mostly moderate offerings. Slaughter cows sold 1.00-2.00 higher on all classes of slaughtercows offered this week. Packer buyers continue to have to fight for offerings as buyers looking forcows to feed and breed push prices higher yet again this week. Quality this week was overall very good which gave buyers even more reason to fight over offerings.

Buyers searching for breeding stock purchased young aged cows on moderate to good demand this week. Young aged 2-3 year olds sold mostly higher with increased interest from all buyers. Feeding cows sold higher this week as well. Cow/calf pairs continue to be offered across the state. Most offerings sold with very good demand. Aged broken mouth cows sold on the best demand this week with many ranchers searching for short keep cows to run on grass this summer.

Read more from USDA’s May 23 Montana Weekly Auction Summary.

National Feeder & Stocker Cattle Summary – Week Ending May 22, 2015

Feeders this week total – 204,700; Included Auctions-168,000; Direct-29,900; Video/Internet-6,800.

Compared to last week, yearlings sold fully steady to 3.00 higher with instances 5.00 higher as advance continues to be on heavy yearlings over 800 lbs.  Demand remains very good on yearlings as the draw of steady fed cattle prices on light trade Wednesday in Kansas at 161.00 continues to bring additional interest back to feeder cattle.

Steer and heifer calves traded steady to instances 5.00 higher where tested (mostly throughout the Midwest).Production areas farther north and west simply don’t do enough fall calving to test the market this time of the year, and the old crop calves are long gone.

Friday’s Cattle on Feed Report had May 1 inventory at 101 percent; placements at 95 percent and marketings at 92 percent.  Inventory was close to expectations, with placements significantly smaller than expected and marketings close to expectations.  Corn and soybean planting have had one of the nicest planting starts in several seasons, as corn planting is now 85 percent complete ahead of the 5-year average of 75 percent. Soybeans are 45 percent planted ahead of the 5-year average of 36 percent.

Auction Receipts:  168,000   Last Week:  147,500   Last Year:  172,200

  • Montana 2,600.  89% over 600 lbs.  40% heifers.
    • Steers:  Medium and Large 1  700-750 lbs (736) 238.20; 750-800 lbs (778) 228.90.
    • Heifers:  Medium and Large 1  600-650 lbs (625) 236.91; 700-750 lbs (721) 216.21.
  • Video Internet Receipts:  6,800    Last Week:  29,600   Last Year:  38,000; (86% over 600 lbs, 20% heifers)
  • Western Video Market: 5,900.  86% over 600 lbs.  23% heifers.
    • Northcentral Region (CO-WY-NE-MT-ND-SD-IA)  Steers:  Medium and Large 1 Sep few loads 425 lbs 350.00.

Read more from the USDA’s May 22 National Feeder & Stocker Cattle Summary.

Weekly Montana Hay Report

Compared to last week:  Very little change was seen in the hay market this week as farmers just wait on the new crop to come in. What little bit of hay moved was moved at steady money. Western dairies still have no new contract prices. Demand for Alfalfa hay is light on very light supplies.

Many parts of central Montana received between 1.5 to 3.0 inches of much needed rain last weekend, which was a welcomed sight for all hay farmers. This rain did help curb the worry of an all-out drought, as well as, curb some demand for ranchers buying hay to stock up in case of a drought.

In western Montana hay continues to be sold to cover needs until cows can be turned out. Central Montana range conditions improved drastically with the recent rainfall and many ranchers are busy turning out cows.

Additionally, new crop hay contracts continue to filter in with slightly lower prices since the last rain. Light demand was seen for grass hay marketed within the state. Good demand continues to be seen for hay to ship to other areas of the country.

  • Alfalfa:   Supreme:  Small squares, 200.00
    • Premium:  Large squares, 150.00-155.00
    • Good:     Large squares, 120.00
    • Small squares, 138.00-150.00
    • Fair:     Large squares, 90.00-130.00
  • Grass:  Good:  Large Rounds, 90.00-100.00; New crop contract, 110.00-120.00; Large Squares, 100.00
  • Timothy Grass:  Premium:  Small Squares, 240.00.  Good:  Small Squares,160.00-180.00.
  • Straw:  Large Squares and Rounds, 35.00-40.00.

Read more from the USDA’s May 22 Weekly Montana Hay Report.