Forage and Hay Outlook€¦ · 17/10/2018 · Forage and Hay Outlook. The Southern Region covers a...
Transcript of Forage and Hay Outlook€¦ · 17/10/2018 · Forage and Hay Outlook. The Southern Region covers a...
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Forage and Hay Outlook
Chris PrevattUniversity of Florida, Extension Economist
Range Cattle Research and Education Center2018 Southern Outlook Conference
September 26, 2018
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Forage and Hay Outlook
The Southern Region covers a large area with wide climate, soil, terrain, forage species, and livestock system differences that influence the production and harvest of forage and hay crops.
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Forage and Hay Outlook• U.S. Pasture and Range Conditions• Weather Outlook• U.S. Forage Supply• Value of Forage Production
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0%
10%
20%
30%
40%
50%
60%2018 U.S. Pasture and Range Conditions by Category
% Poor % Very Poor % Poor, Very Poor
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May Jul Sep
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US RANGE AND PASTURE CONDITIONPercent Poor and Very Poor, Weekly
Avg. 2012-16 2017 2018
Data Source: USDA-NASS, Compiled & Analysis by LMIC
Livestock Marketing Information Center
G-NP-3009/24/18
Improving fall forage conditions
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G-NP-3109/24/18
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May Jul Sep
Percent
WESTERN REGION RANGE AND PASTURE CONDITIONPercent Poor and Very Poor, Weekly
Avg. 2012-16 2017 2018
Data Source: USDA-NASS, Compiled & Analysis by LMIC
Livestock Marketing Information Center
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G-NP-3209/24/18
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GREAT PLAINS REGION RANGE AND PASTURE CONDITION
Percent Poor and Very Poor, Weekly
Avg. 2012-16 2017 2018
Data Source: USDA-NASS, Compiled & Analysis by LMIC
Livestock Marketing Information Center
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G-NP-3309/24/18
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SOUTHERN PLAINS REGION RANGE AND PASTURE CONDITION
Percent Poor and Very Poor, Weekly
Avg. 2012-16 2017 2018
Data Source: USDA-NASS, Compiled & Analysis by LMIC
Livestock Marketing Information Center
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G-NP-3609/24/18
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SOUTHEAST REGION RANGE AND PASTURE CONDITION
Percent Poor and Very Poor, Weekly
Avg. 2012-16 2017 2018
Data Source: USDA-NASS, Compiled & Analysis by LMIC
Livestock Marketing Information Center
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Forage and Hay Outlook• U.S. Pasture and Range Conditions• Weather Outlook• U.S. Forage Supply• Value of Forage Production
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One-Month Precipitation Outlook,
October
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Three-Month Precipitation Outlook, December - February
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Three-Month Temperature Outlook,
January - March
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Three-Month Precipitation Outlook,
February - April
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Three-Month Temperature Outlook,
April - June
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Three-Month Precipitation Outlook,
May - July
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Forage and Hay Outlook• U.S. Pasture and Range Conditions• Weather Outlook• U.S. Forage Supply• Value of Forage Production
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03/26/18
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Thous. Metric Tons
U.S. HAY & HAY PRODUCT EXPORTSAnnual
Other Hay Alfalfa Hay Alfalfa Cubes Alfalfa Meal & Pellets
Data Source: USDA-FAS, Compiled & Analysis by LMIC
Livestock Marketing Information Center
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Japan Saudi Arabia China United Arab Emirates
Thous. Metric Tons
ALFALFA HAY EXPORTSAnnual
2014 2015 2016 2017
Data Source: USDA-FAS, Compiled & Analysis by LMIC
Livestock Marketing Information Center
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Japan Korea Taiwan
Thous. Metric Tons
OTHER HAY EXPORTSAnnual
2014 2015 2016 2017
Data Source: USDA-FAS, Compiled & Analysis by LMIC
Livestock Marketing Information Center
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Forage and Hay Outlook• U.S. Pasture and Range Conditions• Weather Outlook• U.S. Forage Supply• Value of Forage Production
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Hay, Forage, and Feedstuff Prices
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G-P-1208/31/18
120
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210
MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR
$ Per Ton
ALFALFA HAY – MONTHLY AVERAGE PRICEReceived by Farmers, U.S., Crop Year
Avg. 12/13-16/17 2017/18 2018/19
Data Source: USDA-NASS
Livestock Marketing Information Center
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G-P-1308/31/18
105
110
115
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130
135
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145
MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR
$ Per Ton
OTHER HAY – MONTHLY AVERAGE PRICEReceived by Farmers, U.S., Crop Year
Avg. 12/13-16/17 2017/18 2018/19
Data Source: USDA-NASS
Livestock Marketing Information Center
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G-P-0709/24/18
250
300
350
400
450
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JAN APR JUL OCT
$ Per Ton
CENTRAL ILLINOIS SOYBEAN MEAL (48%) PRICESWeekly
Avg. 2012-16 2017 2018
Data Source: USDA-AMS
Livestock Marketing Information Center
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09/24/18
80
100
120
140
160
180
200
220
JAN APR JUL OCT
$ Per Ton
DISTILLERS DRIED GRAIN PRICESChicago, Illinois, Weekly
Avg. 2012-16 2017 2018
Data Source: USDA-AMS
Livestock Marketing Information Center
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Corn Prices Impact The Value of Forage
CME Corn Futures• December 2018 – December 2020• $3.63 - $4.10, $/bushel
• Cheap corn keeps “Cost of Gain” low in the feedlot
• Cheap corn limits “Value of Gain” from grass for Stocker and Cow-Calf producers and the value of hay/haylage*
*Assuming that corn continues to be the benchmark to value feedstuffs
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08/31/18
76.56
65
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105
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
$/cwt.
KANSAS FEEDLOT CLOSEOUTSFeeding Costs per Cwt., Steers
Avg. 2012/16 2017 2018
Data Source: KSU Focus on Feedlots, Compiled by LMIC
Livestock Marketing Information Center
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08/31/18
65
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75
80
85
90
95
100
105
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
$/cwt.
KANSAS FEEDLOT CLOSEOUTSFeeding Costs per Cwt., Steers
Avg. 2012/16 2017 2018
Data Source: KSU Focus on Feedlots, Compiled by LMIC
Livestock Marketing Information Center
The cost of gain information in the Focus on Feedlot survey is Total cost of gain and represents all costs associated with feeding cattle (excluding interest on cattle or feed).
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Stocker Producers• Current Avg. “Value of Gain” of $0.50-$0.75/lb.
isn’t very appealing.
• Producers must either….• Find ways to lower their cost of gain (focus on
most productive forage sites, procure stockers with a higher level of performance, lower health risks, etc.)
• Get Lucky when they bet on the improving market prices and calf gains to enhance VOG
Green Grass Fever
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Forage Cost of Gain
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Projected 2018-2019 Forage Cost of Gain
• Wheat Pasture : $0.30 - $0.45/lb.• SE Cool-Season Annual Forages: $0.50 - $0.65/lb.• Summer Annuals: $0.30 - $0.40/lb.
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Forage and Hay Outlook• U.S. Pasture and Range Conditions• Weather Outlook• U.S. Forage Supply• Value of Forage Production
What will ALL of This Mean Moving Forward…
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Even with “good weather for growing and harvesting and all our technological advances” it continues to be cheaper to
let the cows harvest the grass.
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Pasture and Range Conditions overall are expected to be about average.• Excellent• Good• Fair• Poor• Very Poor
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Cow-Calf Producers Need to:
• Continue to wage war on forage and feeding costs (focus on mgt. & resources)
• Prepare for the next drought…
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168 Samples, Avg. 8.11% CP
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168 Samples, Avg. 51.39% CP
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You can still go broke with good soil…- Chris Prevatt
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Forage and Hay Outlook
Chris PrevattUniversity of Florida, Extension Economist
Range Cattle Research and Education Center2018 Southern Outlook Conference
September 26, 2018