Market Report - January 27, 2023

Ross Bronson, Ag Risk Consultant, Redd Summit Advisors

Cattle Market Report

There is still a lot of discussion going on about the markets. I don’t expect to see a trend until later this spring. There are still a healthy number of cull cows on the market which I believe are continuing to influence the fed market. I still maintain that those will dry up as spring come. It seems like the current market is a more normal cull of opens and older cows. The live cattle futures have been all over the last few weeks with indications of trader manipulation. The feeder cattle market has been in a more sustained downward trend as well. I think patience is key at this point, although I do anticipate the wild ride to continue for a while. As prices creep higher pay attention to the surrounding costs as well and find opportunities to trim where you can if necessary.

Grain Market Report

Corn is up, but only after some ups and downs. Exports are up, but it seems like people are delaying sales. Soybeans have been following a similar trend as well. Good gains with correction and then a return to higher prices. There don’t seem to be any large events driving markets right now, although China’s reopening is expected to influence them some. However, it is most likely that China will be looking to South America to fill there need more than the US. Exports are up.

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Sheep Market Report

Sheep markets continued lower trends across the country. The USDA estimated domestic lamb and mutton meat production for the week ending January 21th totaled 2.02 million pounds on a 32,000 head slaughter this week compared to 2.14 million pounds and 34,000 head the previous week. Imported lamb and mutton meat for the week ending January 14 totaled 5.53 million pounds which is 258 percent of the domestic production for the same period.

Hay Market Report

The hay market is still quiet. Most have what they need and will wait to see if prices soften, or it is necessary to buy. Exports are also soft. It sounds like some are waiting to see what the dollar does before making deals. In general, the price is remaining steady. China did announce that it will allow some modified alfalfa which will open up that market a little more. It does seem that a lot of growers who were holding hay at higher prices are finding themselves with hay still in the barn and need to move it before spring.