Market Report - April 21, 2023

Ross Bronson, Ag Risk Consultant, Redd Summit Advisors

Cattle Market Report

We have experienced the correction in the fed market that I anticipated. In my opinion, that is only a good thing, it makes a continued climb more likely. I anticipate the market to stay strong and increase more over the next few months. Grilling season is kicking off so demand should stay strong. There is a lot of concern about consumer spending as these prices get passed down the line. I don’t know that there is much to be concerned about in the short term. Even with current economic conditions consumers thus far have not slowed much on beef. The feeder cattle price has not experienced quite the same aggressive climb as the Fed market, but I still think it is coming.

Grain Market Report

Soybeans have been down over all for the last few weeks, though they have seen plenty of ups and downs. The April Corn contract is up from two weeks ago, but the July contract is down. This seems to show the mentality that new crop will be strong, and that higher supplies will affect prices accordingly. It feels like the grain markets are feeling less anxious this year than they were about this time last year. This bodes well for the cattle feeding industry. Hopefully we will see a little lower feed prices that will help support the higher cattle prices.

Sheep Market Report

Markets lost most of their recent gain. San Angelo was lower $15-30. Goldthwaite, Hamilton, Fredericksburg, and New Holland followed suit. The USDA estimated domestic lamb and mutton meat production for the week ending April 15th totaled 2.17 million pounds on a 34,000 head slaughter this week compared to 2.2 million pounds and 34,000 head the previous week. Imported lamb and mutton meat for the week ending April 7th totaled 5.01 million pounds which is 228 percent of the domestic production for the same period.

Hay Market Report

Trade has started to pick up some as warmer climate regions are starting on their harvest. Dairies are looking at some alternatives to alfalfa, and exporters are starting to be a little more active. In general, however, the hay trade is still slow. Most of the conversations I have been having are around what prices will be for this year’s harvest, and how far yields will be down in the northern regions with the later spring this year. I have heard numbers from a little under $200/ton to $230/ton. If you can, it sounds like it might be a good idea to wait a bit before agreeing on prices.

*Ross Bronson and Redd Summit Advisors are not financial advisors, and this market report is in no way intended to provide financial advice. This commentary is merely meant to be insight and input about current market conditions. It is recommended that any market commentary be compared to your own trusted sources, experience, and market evaluation. Especially those that are more specific to your regional market dynamics.