Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Hay Crops Wither to Below Year 1909 Level

July 26, 2011 at 15:45 by Andriy Moraru

The severe drought in Texas, US, is bringing the hay crops to the lowest level in more than a century, pushing the feed prices for the dairy and beef producers up. Texas produces not only cattle but is also the biggest growing region for hay, which is used as the cattle feedstock across the whole country.

Price of some varieties of hay rose more than 50 percent during the last 12 months. The ongoing worst ever recorded drought destroys the grass and forces farmers to opt for more expensive cattle feed — mainly corn.

It’s estimated that this year, only one crop of hay will be collected compared to three crops harvested during normal years. The farmers are expected to harvest 57,605 million acres of hay this year — the lowest level since 1909. The corn is currently sown on 92,282 million acres — the highest post World War II level.

Corn futures is currently trading at $676.25 per bushel on CME as of 15:18 GMT today — up 0.26 percent during the day.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply