Seth Hoyt
Author of The Hoyt Report, providing hay market analysis and insight
Export demand for alfalfa hay in the western states has been impacted by events during recent weeks. The bankruptcy filing of Hanjin Shipping Company from South Korea two weeks ago caused disruptions in moving alfalfa hay overseas as West Coast exporters had to rebook with other shipping lines and trans-load hay into other shipping line containers. While Hanjin was not the main shipping line of most hay exporters, an immediate impact was higher rates to ship containers overseas. Rates were boosted on incoming containers last week and are expected to soon be raised on outgoing containers from West Coast ports as well. Another factor for the lighter demand for alfalfa hay was the record amount of alfalfa hay exported to China in June and July. While there was still demand for alfalfa hay from China, buyers in China were offering less money.