Improved milk price outlook stimulates hay demand

By Seth Hoyt

Seth Hoyt
Author of The Hoyt Report, providing hay market analysis and insight.

Some California and Idaho dairies came into the alfalfa hay market last week after being either out of the market or only buying small amounts of hay. The result was more alfalfa hay sales in Idaho and Nevada and more inquiry in Utah from California dairy hay buyers. It appears the improved milk price outlook for late summer and fall helped to stimulate the improved demand from dairy hay buyers for alfalfa hay. The demand was mainly for higher quality milk cow alfalfa hay, which had been trading mainly to hay export buyers the past few weeks. It was interesting that after stronger demand for alfalfa hay in Idaho early last week, some dairies backed out of the hay market late. They turned cautious after the Class III milk futures and cheese prices softened late in the week and they wanted to make sure the stronger milk price outlook would hold.