What Do Cattle Numbers Mean for the Hay Market?


The following is part of an article from hayandforage.com:

by Rick Mooney

Solid clues as to where hay prices are likely headed in 2012 can be found in USDA’s most recent Cattle report, says Steve Koontz, ag economist with Colorado State University Extension.

Most telling in the report, released late last month, is its estimate that beef replacement heifers in the U.S. totaled 5.2 million head on Jan. 1, a gain of 1{962fe9be9a8a5c386944bfa41f48d98b010325707b70b1fa6182bcabd27c5d7f} compared to that of a year earlier. “People are starting to hold back their heifers, indicating that they’re thinking about a little more rebuilding for the long term,” says Koontz. “That’s something we haven’t seen in the industry for awhile. Among other things, that could be a sign that we’ll see strong demand for hay, particularly in the Southern Plains states next winter.”

Near-term, though, Koontz believes that beef-quality hay prices for the 2011-12 marketing year have already peaked.

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Source:  hayandforage.com

Posted by Haylie Shipp


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