Futures and equity markets were closed Monday in observance of Martin Luther King, Jr.
Negotiated cash fed cattle prices were at a standstill through Monday afternoon, according to the Agricultural Marketing Service. Last week, they wobbled on either side of steady. FOB live prices were steady to $1 lower in the Southern Plains at $172/cwt., steady to $2 lower in Nebraska at $173. and steady in the western Corn Belt at $175. Dressed delivered prices were 50¢ to $2 lower in Nebraska at $272-$275 and steady to $1 higher in the western Corn Belt at $275 on a light test.
Last week’s weighted average five-area direct FOB live steer price was 54¢ lower at $173.47. The weighted average dressed delivered fed steer price was $1.08 lower at $273.70.
Choice boxed beef cutout value was $2.16 higher Monday afternoon at 291.42/cwt. Select was 71¢ higher at $272.56/cwt.
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All hay production last year of 118.8 million tons was 7.1 million tons (+6.4%) more than the previous year, according to USDA’s recent annual Crop Production summary.
However, that was 7.8% less than the 10-year average for 2012-21, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University.
“Total Dec. 1, 2023 hay stocks were 6.9% higher than one year earlier but were 10.8% below the 10-year average,” Peel says, in his weekly market comments. “Hay stocks in the top 10 beef cow states were up 18.5% year over year but were 7.3% below the 2012-2021 average for these states. Total Dec. 1 hay stocks in these states represented 52.8% of total U.S. hay stocks.” He adds that hay stocks were higher year over year in eight of the 10 top beef cow states. Year-over-year production was less in Kansas and Kentucky.
Although the hay situation is more positive this winter than last, Peel emphasizes hay stocks remain below the 10-year average, and current severe winter weather will significantly increase hay usage.