For the week ending February 27th the Midwest sheep and goat market was back to full strength following an arctic blast across the plains the previous week. All markets reported a higher if not sharply higher goat market. The lamb market was steady to higher in most areas as well. The disruptions last week caused low volume which came back this week. With buyers aggressively buying this week may indicate that they still have a lot of open orders to fill and do not want to risk another market disruption to fill those orders. We are now almost a month out from Easter and other religious holidays so the market could continue higher or steady for several more weeks. It should also be noted that given the strong demand some producers may be considering or actively culling the herd. Which in the longer term market picture reduces incoming supply over the next couple of years and supports higher prices for longer.
Other commodity markets saw a reflationary trade through mid week and then turned lower at the end of the week. USDA export sales data on Thursday morning showed China has taken a major step backward in purchasing commodities from the US. China even cancelled 1,000 MT of US beef exports. Reuters reported that a Chinese soybean crusher said they expected Brazilian soybeans by April 1, but were prepared to drop production back until the supply of soybeans was available. As for feed ingredients this month DDG’s may once again become tight as US ethanol production last week took a major hit due to the cold snap. US ethanol production dropped 28% week to week and 38% year over year.
Other feed input markets to report include the hay market. Kansas and Nebraska both reported steady movement of hay this week, but slightly lighter this week with milder weather returning to the Midwest. Kansas and Nebraska USDA reporters stated that due to the frigid temperatures many ranchers fed and utilized more hay than they had planned on up to this point in season. Many are now on the hunt to hold them through the first grazing and cutting opportunities later this year. This increase in demand will likely result in higher prices, but supply seems to be becoming harder to find.
For the week ending 2/27 lamb slaughter under federal inspection was estimated at 35,000 head on Friday. There is an expected Saturday slaughter of a 1,000 head. That will bring the total weekly slaughter to 36,000 head. That’s 3,000 head more than last week given conditions improved and packing plants were able to keep full production. Year to date lamb slaughter at 281,000 head. About 7.7% or 24,000 head lighter than a year ago. Cattle and hog slaughter is also down about 3.8%-4.2% from year ago levels for reference. Lamb and mutton production under federal inspection through 2/27 is estimated at 2.4 million pounds. That is 200,000 pounds more than last week. Year to date lamb and mutton production is estimated at 19.0 million pounds. That is down 7.1% or 1.4 million pounds. The average live lamb weight for the week ending 2/27 was 136 pounds, 1 pound heavier than last week and 1 pound lighter than last year. Dressed weights for lambs this week were 68 pounds. That is unchanged from last week and 1 pound lighter than a year ago.
As for ethnic holidays that may influence markets. We are now 1 month from Passover March 27- April 4. Almost one month from Western Roman Easter April 4 and 45 days to Ramadan month of fasting.
Sale reports from the week
Hamilton Commission Company Hamilton Texas sold 1,475 head of sheep and goats on Monday 2/22. Dorper lambs were sharply higher, wool lambs were sharply higher, barbado lambs were sharply higher, ewes sharply higher, kids steady and nannies sharply higher. Highlighted quotes from the sale include dorper and dorper cross lambs weighing 40-70 lbs brought $300-$375/cwt. Wool lambs weighing 70lbs & up brought $265-$330/cwt. Kid goats weighing 40-70 lbs brought $300-$430/cwt.
http://www.hamiltoncommissioncompany.com/wp-content/uploads/2010/12/2.22.21-sg-sale.pdf
Producers Livestock San Angelo Texas sold 2,653 head of sheep and goats on Wednesday 2/23. That compared to 4,603 head on 2/9 and 3,812 head last year. Compared to two weeks ago all classes sharply higher. Trading active, demand good for weather shortened supply. Highlighted quotes from San Angelo include; 50 head of slaughter lambs averaging 66 lbs brought $338-$346/cwt, 15 head of shorn slaughter lambs weighing 130 pounds brought $170-$194/cwt, 288 head of hair breed slaughter size lambs averaged 65 lbs brought $336-$356/cwt, 80 head of hair breed slaughter lambs weighing 82 pounds brought $315-$328/cwt, 15 head of feeder goats weighing 38lbs brought $430-$450/cwt, 148 head of slaughter goats weighing 53 lbs brought $430-$450/cwt, 6 wethers weighing 119 pounds brought $270-$285/cwt.
https://www.ams.usda.gov/mnreports/ams_2014.pdf
Centennial Livestock Fort Collins Colorado sold 1,288 head of sheep and goats on Wednesday 2/24. That compared to 421 head the week prior and 420 head a year ago Compared to last week: Feeder lambs and Slaughter lambs had no test. Slaughter bucks and ewes traded steady. Slaughter kids traded unevenly steady on a light test. Slaughter nannies sold mostly steady. Slaughter bucks and wethers traded steady.. Highlighted quotes from Fort Collins; 3 head of feeder lambs weighing 43 lbs brought $130/cwt, 32 head of slaughter lambs weighing 75 lbs brought $225-$270/cwt, 131 head of slaughter lambs weighing 93 pounds brought $235-$245/cwt, 25 head of hair breed slaughter lambs weighing 72 lbs brought $300/cwt, 2 head of feeder kids weighing 38 lbs brought $130/cwt, 24 head of slaughter goats weighing 65 lbs brought $195-$260/cwt, 12 wethers weighing 121 lbs brought $330-$390/cwt.
https://www.ams.usda.gov/mnreports/ams_1899.pdf
Sioux Falls Regional Livestock in Worthing, South Dakota sold 2,181 head of sheep and goats on Wednesday 2/24. That compared to 865 head last week and 746 head last year. Traditional slaughter weight lambs 4.00 higher. Slaughter ewes 5.00 to 10.00 higher, except Good 4-5 steady. Very good demand for this really nice, large offering of slaughter lambs, and slaughter ewes. Highlighted quotes from Sioux Falls; 53 feeder lambs weighing 47 pounds brought $330-$350/cwt, 139 slaughter lambs weighing 64 pounds brought $330-$332.50/cwt, 218 head of slaughter lambs weighing 139 pounds brought $161-$181/cwt, 55 slaughter goats weighing 75 pounds brought $$365-410/cwt, 20 wethers weighing 51 pounds brought $390/cwt.
https://www.ams.usda.gov/mnreports/ams_2016.pdf
Kalona Iowa sale barn sold 1,027 head of sheep and goats on Wednesday 2/24. That compared to 472 head the prior week and 600 head a year ago. Compared to the last report two weeks ago (2/10) slaughter lambs 40-100 lbs. 15.00-30.00 higher, over 100 lbs. to few last report for a trend. Hair lambs 15.00-20.00 higher, slaughter ewes 20.00 higher. Slaughter goats to limited last report for a recent trend. Trade active with very good demand for moderate offerings. Highlighted quotes from Kalona; 38 head of slaughter lambs weighing 63 lbs brought $340-$360/cwt, 164 head of slaughter lambs weighing 131 lbs brought $170-$250/cwt, 22 head of hair breed slaughter lambs weighing 63 lbs brought $325-$340/cwt, 59 head of slaughter goats weighing 66 pounds brought $222.50-$270, 16 head of slaughter goats weighing 82 pounds brought $250-$275, 4 wether weighing 100 lbs brought $320-$350/cwt.
https://www.ams.usda.gov/mnreports/ams_2153.pdf
Colby Livestock Colby Kasnas sold close to 701 head of sheep and goats on Thursday 2/25. Talking with sale manager Leeland Wilson he called the market sharply higher on all goats and steady on lambs. There were plenty of buyers in seats and demand held throughout the sale. Highlighted quotes from Colby; 2 head of boer cross kids weighing 63 pounds brought $450/cwt, 17 head of boer cross kids weighing 61 lbs brought $442.50, 39 head of boer cross kids weighing 56 lbs brought $439/cwt, 8 head of dorper lambs weighing 51 pounds brought $327.50, 10 head of dorper lambs weighing 69 pounds brought $307.50.
Mills County Commission Company in Goldthwaite Texas sold 4,573 head of sheep and goats on Thursday 2/25. Light kids were $15 higher, slaughter kids were $10-$15 higher, slaughter nannies were $15-$20 higher, replacement nannies were $20 higher, wool lambs were $10 higher, Dorper lambs were $10 higher, barbado lambs were $10 higher. Highlighted quotes from the sale include lambs weighing 70-90 pounds brought $260-$320/cwt, boer/ boer spanish cross kids weighing 60-70 pounds brought $330-440/cwt, 70-90 pounds $280-$375/cwt.
https://www.millscountycommissioncompany.com/our-story
Clay Patton recaps the full report here:
