Midwest sheep and goat market report for week of June 19

Midwest sheep and goat market report for week of June 19
RRN Photo. Goat enjoy hay in the feedbunk.
June 19th, 2021 | Clay Patton

For the week ending June 19 the Midwest sheep and goat market was steady to higher on all classes of sheep and goats. This is not what many expected as typically there is a summer slump in the market. From the ethnic market perspective Eid ul-Adha appears to still be very supportive of the market. It’s great to see the market recover from it’s late May early June slump, but there is still the possibility of choppy waters ahead. This week has been hot and dry. In the Northern plains ranchers are already making the tough decision of culling herds to meet the forage or hay available. Forecasts are trying to become friendlier, but the high plains west of the Big I states could miss out on much of the moisture. That’s bad for grass and hay production. Not to mention the fact high grain prices caused a loss of acres for hay production. For those that can make it through with the dry spell though will likely be rewarded with a continuing strong market as supplies of livestock will be lower. Helping to support this currently stronger market is also a weekly uptick in lamb specials at the grocery store. USDA reported The lamb retail activity index increased by 51.4% this week. In the meat case lamb roasts decreased by 38.5% while chops increased by 109.5%. Shoulder Blade Chops and Loin Chops were the most widely featured items among the lamb features as prices were mixed. This type of data continues to drive home the likely fact that the pandemic brought new consumers to the lamb market and hopefully will keep them consuming lamb for years to come. 

Other commodity markets continue to experience volatility this week. The entire commodity complex saw broad risk off pressure on Thursday following news from the Federal Reserve. Soybeans caught heavy selling to the tune of over $1 per bushel losses. The news from the Fed that drove the market was the Fed wanting to start bringing interest rates back up in late 2023. It’s years away, but the market took it as a sign of possible tapering to the stimulus that has been freely flowing over the last year. For the sheep and goat producer a slight bump in interest will likely not be felt in any big way. Once the rate increase goes into effect there may be a slight change to interest on operating notes or longer term credit. Still for hedge funds and other managed money in the market a move in interest rates means inflation is less likely and the play to buy commodities dwindles. Grains recovered on Friday, but some of the premium was taken out of the market. This could be an opportunity for livestock feeders to secure lower priced grain ahead of possible weather concerns that drive the market higher.  

Other feed input markets to report include the hay market. Kansas and Nebraska reported steady prices on old crop hay. First cutting alfalfa was steady in Kansas except for dairy quality. In Nebraska first cutting alfalfa was up $5-$10/ton. Hay is being bought about as quick as it’s rolled up. In Kansas farmers are running into wheat harvest and that is delaying another cutting from being laid down. As for Nebraska it’s noted that some marginal irrigated circles are being planted to feed for ranchers to secure enough feed for this winter. 

For the week ending 6/18 lamb slaughter under federal inspection was estimated at 34,000 head on Friday. There is an expected Saturday slaughter of a 0 head. That will bring the total weekly slaughter to 34,000 head. That’s 1,000 head more than the previous week and 4,000 head less than the previous year. Year to date lamb slaughter is at 912,000 head. About 1.2% or 11,000 head more  than a year ago. That was a decrease of about 0.1% from it’s lead last week. Cattle slaughter saw a similar pattern as it’s lead to last years slaughter pace dropped 0.1% to +5.6% ahead of the previous year. Hog slaughter remains 1.4% above the previous year. USDA data shows that goat slaughter under federal inspection was 7,739 head for the week as of 6/18. Lamb and mutton production under federal inspection through 6/18 is estimated at 2.1 million pounds. That is unchanged from the previous week. Year to date lamb and mutton production is estimated at 59.9 million pounds. This is the second week that 2021 production dropped behind 2020 now by 1.1% or about 600,000 pounds. The average live lamb weight for the week ending 6/18 was 127 pounds, that is a 1 pound increase from last week and down 7 pounds from last year. Dressed weights for lambs this week were 63 pounds. That is unchanged from last week and 5 pounds lighter than a year ago. 

Sale reports from the week

Texas sales of both Hamilton and Producers Livestock sold a combined 8,000 head this week. Prices were steady to $5-$10 higher on slaughter lambs both wooled and haired. Feeder lambs steady to $5 higher. Kid goats were mixed. Slaughter goats are sharply higher. Feeder kids lower. Nannies and bucks steady to $20 higher. Feeder wool lambs 40-70 pounds were $215-$268. Slaughter wool lambs 80-105 pounds were $170-$266/cwt, haired sheep slaughter lambs weighing 45-70 pounds brought $210-$288/cwt, feeder goats weighing 20-40 pounds brought $210-$375/cwt, slaughter goats weighing 40-70 pounds brought $225-$392/cwt, Wethers at producers weighing 90-150 pounds brought $365-$380/cwt.

http://www.hamiltoncommissioncompany.com/wp-content/uploads/2010/12/6.14.21-sg-sale.pdf

https://www.ams.usda.gov/mnreports/ams_2014.pdf

South Dakota at Sioux Falls sold 2,000 head of sheep and goats this week. Demand was strong once again for slaughter size lambs and drove the market higher throughout the sale. Slaughter lambs were $20-$25 higher. Slaughter goats were once again very light in numbers to try and establish a market. Feeder lambs weighing 45-65 pounds brought $252-$315/cwt,  Slaughter lambs weighing 75-85 pounds $255-$290/cwt, slaughter goats weighing 50-60 pounds brought $355-$510/cwt, Wethers weighing 65-70 pounds brought $355-$365/cwt.

https://www.ams.usda.gov/mnreports/ams_2016.pdf

Kalona Iowa sold nearly 2,000 sheep and goats this week. Slaughter lambs were mostly steady, haired lambs were firm and slaughter goats were $4-$8 lower. Cull goats were steady as well. Trade was active with good demand. Feeder hair lambs weighing 25-30 pounds brought $205-$265/cwt, slaughter lambs weighing 50-75 pounds brought $241-$292.50/cwt, hair lamb slaughter size weighing 65-85 pounds brought $231-$240, feeder goats weighing 35-45 pounds brought $130-$152/head, and slaughter goats weighing 55-65 pounds brought $182.50-$224.

https://www.ams.usda.gov/mnreports/ams_2153.pdf

Centennial livestock saw a steady run at nearly 1,500 head this week. Slaughter lambs were $10-$15 lower. Hair breed slaughter lambs sold firm. Slaughter ewes saw the best increase this week up $15-$30 Feeder lambs not enough for a market comparison. Slaughter goats were $10 higher. Nannies and bucks were steady. Feeder lambs weighing 55-65 pounds brought $255-$290/cwt. Slaughter lambs weighing 80-120 pounds brought $250-$275/cwt, hair lambs slaughter size weighing 75-90 pounds brought $255-$275/cwt, feeder goats weighing 35-45 pounds brought $142.50-$155/hd, slaughter goats weighing 100 pounds brought $325/hd, wethers weighing 110 pounds brought $395-$455/hd. 

https://www.ams.usda.gov/mnreports/ams_1899.pdf

Colby livestock in Kansas appears to have sold steady this week. Sale manager Leeland Wilson commented that quality was good again this week and prices were steady with a week ago. For individual quotes follow the link below.

Clay Patton has a full audio recap of the report here:

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