Rain Brings Slight Drought Relief, Hay Prices Hold Firm
Drought Monitor Update July 30
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