The drought in the South is causing somewhat of a sucking sound. Hay going one way and cows going the other. There's a lot of buzz in Montana about the price of hay and it seems like the whole state of Idaho is in Montana looking for hay to replace theirs that went to California. Supply and demand at it finest.
At this time last year most ranches in Montana were sitting on a very comfortable supply going into the winter. In many cases a two year supply. Mother Nature took care of that in short order with one of the most severe winters in recorded history. That along with spring floods and double average rain fall which kept some hay fields under water most of the spring is causing locals to take a deep look at their own needs before letting go. I get several call each week asking about hay for sale. This would be the year to own a 'big square' baler! You'd be in the driver's seat if you had hay to sell.
So, how about cow numbers? Recent Ag reporters are calling cow numbers in a continued downhill slide. I got a call out of Oklahoma this week looking for a place to park a cow herd for two years in hopes of surviving the dry pasture conditions until a grass comeback is evident. Many ranches in Texas and Oklahoma have liquidated their entire cow herds. Yesterday I listened to a report of a five mile long line of trucks and trailers waiting to unload at an Oklahoma stockyard. Feed is high, grass is gone, what do you do?
For those that have feed and cows it looks good and looks to stay that way for a few years. I am no market forecaster but if you have abundant rain and own the cows, hang on the ride should be good!
Have a great summer weekend.
No comments:
Post a Comment