To start off this week I want to wish everyone a happy independence day.
For the week ending July 2nd the Midwest sheep and goat market was split again. Southern sales saw a sharp drop in wool and hair lamb prices. Goat prices held their own. Northern sales saw firmer prices on lambs, but many in the trade are concerned they may just be a week behind and lower prices are likely on their way. Demand was mixed batch this week with Southern sale noting demand as moderate at best. Some 4th of July grilling demand was noted on lightweight slaughter lambs at Centennial Livestock in Colorado. One possible reason for the dramatic drop in Southern lamb prices may be the continuing drought and poor pasture and forage conditions. In the latest crop progress data USDA noted that Texas pasture and forage was rated 75% poor to very poor. The Northern plains did see some limited moisture late in the week and could through this week, but it may not do much with another round of hot and dry conditions expected mid July-August. Nebraska pasture and range is considered 41% poor to very poor. That is hurting the market from a lack of places for the stock to go with ample forage and feed. Forecasters note that equatorial pacific waters are still holding in a La Nina weather pattern. That typically means hot and dry conditions to continue for the foreseeable future. Not all hope is lost though in this market as the US Meat Export Federation notes that Carribean an Mexican demand are through the roof for US lamb. According to USMEF data January-April exports of U.S. lamb are up 49% by volume compared to the same period in 2021. Export value during that same period climbed 76% to nearly $10 million. Now if feed resources were just more abundant to help carry more stock to help increase supply to meet this aggressive demand.
Highlighted quotes this week include Centennial Livestock selling 13 head of wool lambs weighing 98 pounds for $215/cwt or $214/hd. Centennial also sold 25 head of 182 pound mature does for $273/hd average. The upper end of the draft brought $340/hd. Centennial on the heavy wethers sold 10 head weighing 90lbs $345/hd or $383/cwt. Kalona Iowa sold 33 head of 44 pound feeder wool lambs for $242/cwt or $106.50/hd. The upper end brought $260/cwt or $114/hd. Kalona also sold the upper end of 82 pound wethers for $340/hd or $414/cwt. Sioux Falls Regional Livestock sold 13 head of 122 pound cull ewes for $120/cwt or $146/hd. Sioux Falls also sold 34 head of open 1-2 yr old replacement ewes for $201/hd. Producers livestock in San Angelo Texas sold 460 head of hair lambs weighing 65lbs for $258/cwt $167/hd. The upper end brought $274/cwt or $178/hd. Producers also sold 111 head of open yearling replacement hair ewes for $186/hd average and $194.50/hd on the upper end. Columbus Sales Pavillion in Nebraska sold 4 head of boer kids weighing 88 pounds for $335/hd or $380/cwt. Columbus also sold 19 head of 114 pound does for $232.50/hd.
USDA retail data showed the lamb cuts retail activity index was 10.10% higher. The roast ads were 19.23% higher and chop ads were 25.30% lower this week. This week Lamb features offered more ad space for Ground Lamb and Stew Meat-Mutton.
For those looking at ethnic holidays for marketing times Festival of Sacrifice is July 9-10 and Islamic new year starts July 29-30.
Other commodity markets continued to be friendly to the livestock feeder. Managed money which has been buying grains and other commodities as a hedge against inflation. As recession seems to be looming money has been shifting away from riskier assets such as commodities and stocks and into cash and bonds. USDA released their quarterly stocks and acreage report on Thursday. According to USDA US farmers planted just over 89 million acres of corn and soybeans. That was less than expected for soybeans and slightly more than expected for corn. Both are below year ago levels. While the futures market dropped this week the cash market continues to be fairly strong. The quarterly stocks report showed that commercial grain companies hold most of the bushels currently in the US.
The hay market in Nebraska, Kansas, Iowa, South Dakota and Wyoming reported a firm hay market with several states reporting alfalfa cubes and dehydrated pellets up $15-$30/ton. South Dakota noted first cutting alfalfa was short vs. previous years for dairy quality alfalfa, but dairies are playing close to the vest and not chasing the market higher. Grass hay demand is also noted as strong. USDA’s acreage report shows across the US farmers have 51.507 million acres of hay planted. That is up 771,000 acres from the previous year. Alfalfa and all other hay classes both saw an increase in acres this year.
Lamb slaughter this week was estimated at 32,000 head through Saturday. That is unchanged from last week and down 3,0000 head from the same week last year. Year to date lamb slaughter at 871,000 head -11.4% or 112,000 behind the previous year’s lamb slaughter. Live lamb weights this week were 136 pounds. That was a decrease of 1 pound from last week and up 11 pounds from last year. Dressed lamb weights were 69 pounds. That is unchanged from last week and an increase of 6 pounds from last year. Goat slaughter under federal inspection for last week was 8,963 head.
Here is a regional price range from all sales in the report.
Wool lambs
20-40 lbs $150-$295/cwt
40-70 lbs $125-$287/cwt
70 lbs & up $125-$240/cwt
Hair lambs
20-40 lbs $140-$250/cwt
40-70 lbs $140-$275/cwt
70 lbs and up $120-$290/cwt
Wool ewes
Stocker $135-$175/cwt (limited numbers here)
Slaughter $45-$120/cwt
Hair Ewes
Replacement $65-$305/hd
Hair Rams $76-$290/cwt
Kid Goats
20-40 lbs $150-$360/cwt
40-70 lbs $150-$430/cwt
70 lbs & up $250-$410cwt
Wether
70lbs & up $300-$414/cwt
Does
Slaughter medium-fleshy $125-$275/hd
Replacement $175-$375/HD
Bucks
Breeding $275-$325/cwt
Slaughter $110-$300/cwt
