Hay Daily News

2006-12-23T21:48:00.000-08:00

Hay Daily News: So There Really Is A Hay Shortage!

Yes, hay is getting short and we are working off of barn stored reserves at this time. So, not only will we see an increase in hay price due to the end of the hay season, but we will feel it even more (our pocket books, that is) because this stored hay has been "put up" in the barn throughout the season by the hay producers.

"Put Up" you might ask? Basically that equates to $0.30 - $0.50 a bale cost to the producer to store his hay (load the bale of hay from the field onto a trailer, move the trailer to the hay barn – unload the bale of hay from the trailer, and stack the bale of hay in the hay barn). In general, that's why you'll find a difference in the price "in the field" vs "out of the barn".

To make matters worse, everyone who has hay right now knows its present and future value. This year is and will be an interesting test of character for our hay producers!

Market prices nationwide will also be affected by seemingly unexplainable blips on a graph. Here's what I mean...do you remember in June/early July 2006 when hay prices went sky high for about 2 weeks then settled back into their steady price incline?

Well, we are about to experience the same type of phenomenon, but its due to a completely different source and at first glance, it's not going to make any sense at all. So what's about to happen?

Well, late spring, early summer 2006, savvy hay producers/brokers/investors realized that the hay shortage was going to be bad...really bad. So, as most savvy investors tend to do, they invested - at the right time and with a plan.

That plan was to pull fresh hay cuttings off the market or not to release them at all - put them in the barn and store them until hay prices hit "level 1". At level 1, they will release 20-30% of this hay. Result - we will see a very short term stabilization in hay prices.
This trend will continue and we will see the various levels / plateaus on a graph, until everyone is completely out of hay. And each hay investor’s bottom line is different, so we'll likely feel the impact regionally rather than on a nationwide basis.

For example, a bale of Coastal or Alicia Bermuda Hay could be purchased (resale price) for $2.50 - $3.50 late spring/early summer 2006. By the time mid fall arrived, that same bale cost $4.50 - $5.00 in the field. Now, in the barn (add $0.50) and settling into winter, you are going to find that same bale of hay priced between $4.50 and $8.00!

Yes, that's quite a range, I know. But, the 2006 hay season has turned into the wild west as the gap between supply and demand grows larger each and every day.

Another interesting point to note is that, in general, the hay producer or custom baler's profit is almost always in the fourth or last cutting of the season. So, you might imagine how it could be tempting for them to hold on as long as possible.

Theory and reasoning aside, in the next edition, I will be sharing my thoughts with you on what to do NOW about your particular hay situation...

About the Author
==================
Elizabeth Landers
Hay-Bale.com
Premier Horse Hay

2006-12-11T19:56:00.000-08:00

Hay Daily News: Hay Photo Gallery Preview

Wow, the pictures of the Northern Louisiana hay field just got better and better as the sun went down. The coastal hay started sparking as the sun and turned golden as the sun turned from yellow to orange to red.

This is an Alicia Bermuda Hay field in southern Lousiana...and talk about micro-managed!

We just got news that the tests came in at 15%-16% protein! For bermuda hay, I must say Hats Off to Gilbert! He truly has it down.

He just secured another 30 acres that will be irrigated and fertilized beginning 2007 - a long time dream of his come true. We can't wait to see what this field produces in it's first year!

And yet another superb Alicia hay farm...

There are those round bales that David's been stashing away!

Some of the finest bales of bermuda come from this central Louisiana farm. There's still not a single weed to be found and we're on number 3000+! I looked again yesterday and finally thought i had found one...no luck - just a blade of bahaia hay from a neighboring field - rats!

Next issue Hay Daily News: What does Gibert have in store for us this upcoming visit? He's promised something special, but how is he going to beat his last 3rd cutting? Then again, knowing Gilbert, he has an ace (or two) up his sleeve!

More to come from Hay-Bale.com when we return...

2006-12-03T04:55:00.000-08:00

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