Bull Tackle Feed in Lexington Nebraska sponsors this weekly report. This week we hear from one of his customers on some of the benefits they have seen using Bull Tackle Products. Learn more at Bull Tackle’s Facebook page. https://www.facebook.com/bulltackle/
For the week ending November 20th the Midwest sheep and goat market continued their march higher. On the slaughter goat side it appears that number 1s are quickly pushing up towards last year’s highs of $450-$490/cwt. On the slaughter lambs they are once again up past $300/cwt. In San Angelo this week feeder wool lambs brought over $400/cwt. The late Thanksgiving push has brought prices much higher than it did a year ago. That begs the question of how much longer the rally can last and if new market highs are possible. Given we’ve had three consecutive weeks of higher prices, a steady mark next week could be in the cards as producers and buyers slow movement to enjoy the Thanksgiving holiday. In global trade news this week Vietnam lowered their tariffs on US pork imports. Which directly doesn’t have a huge impact on sheep and goat prices. However in the long term if higher pork exports can support stronger pork prices it might be easier for the consumer to justify the higher lamb and chevon prices. This is a pretty narrow expectation, but in the long run similar factors can all help to support the market. Another positive for the market was the fed cattle cash trade after being steady for weeks on end moved higher. A rising tide lifts all boats and cattle, sheep and goats could all be supporting one another right now.
Last week’s USDA retail data saw a slight dip from it’s strong move higher the previous week. The lamb cuts retail activity index was 25.99% lower compared to the prior week. The roasts increased by 74.57% while chops ad space was 51.82% lower. Rack, Loin Chops, and Bone-In Leg were the most widely featured items among the Lamb features as prices were lower.
Other commodity markets were mixed to higher this week. Strength in the market was early on as inflation concerns brought speculative money into the commodity complex. Pushing lower on the market later in the week was a higher US dollar index that has global investors flocking to it as a safe haven. Grains and other commodities are still seen as an asset against inflation and seem to have support not too far away. That means for livestock feeders there are still high input prices. For fuel prices maybe a little short term relief could be in store as the US and China released crude oil reserves from the strategic petroleum reserve.
This week USDA hay reports are back and for the most part Nebraska and Kansas saw steady prices for the most part. Kansas feedlots did pay upwards of $2 less for found and delivered alfalfa vs. 2 weeks ago. In Nebraska many farmers are baling corn stalks to help stretch higher quality feed products this winter. Or have supplies ready to sell to help livestock producers stretch their feed resources this winter. The Northern plains continue to be dry and likely a strong source for demand going through the winter. Many of these ranchers though have been buying hay through the late summer and early fall. Many of these ranches may also be stocked and ready to go through winter and the big demand surge may not come as some expect.
This report was produced before the Friday weekly slaughter data was available, but as of Thursday the US lamb slaughter was at 35,000 head. That was 4,000 more than last week and 2,000 more than the previous year. Packing plants are ramping up production given Thanksgiving is next week and plants will be idled to observe the holiday. Last week live lamb weights were 124 pounds live and 63 pounds on the rail. That is steady with the previous year.
Here is a regional price range from all sales in the report.
Wool lambs
20-40 lbs $350-$405/cwt
40-70 lbs $300-$380/cwt
70 lbs & up $225-$312.50/cwt
Hair lambs
20-40 lbs $330-$385/cwt
40-70 lbs $280-$400/cwt
70 lbs and up $220-$360/cwt
Wool ewes
Slaughter $150-$200/cwt
Replacement $245-$318/cwt
Wool bucks N/A
Hair Ewes
Slaughter $100-$275/hd
Hair Rams
Slaughter $150-$215/cwt
Kid Goats
20-40 lbs $300-$490/cwt
40-70 lbs $275-$450/cwt
70 lbs & up $265-$345/cwt
Does
Slaughter medium-fleshy $160-$285/hd
Replacement $225-$322.50/HD
Bucks
Slaughter $210-$285/cwt
Breeding $350-$545/hd
Clay Patton has an audio recap of the report here:
