December 1 hay stocks was released earlier this month by USDA- NASS, confirming that hay inventories were tighter than a year ago. The December 1 figure is an all hay measure, and showed total hay was about 500 thousand tons smaller than 2019, or down about half a percent.  States across the West, northern High Plains, and Northeast states showed smaller inventories.  Nevada was the hardest hit state, dropping inventories 57% from a year ago.

In the first three weeks of 2021, the pork cutout value has been above last year and five-year average, starting 2021 at $78.77 per cwt and rising to $80.26 last week, a 1.9% ($1.49) increase. The strength in the pork cutout has been aided by the belly, ham, and rib primal values. At the start of 2021, the belly value jumped $24.00 per cwt (23.4%) above the last week of 2020 to $102.63 per cwt. The following week, belly values cooled some declining 2.7% to $123.17 per cwt. This week the belly value further softened decreasing to about $120 per cwt.

Cattle on feed beat analyst expectations, placing cattle at a rate greater than a year ago. Placements came in at 0.7% higher than last year, or 1.842 million head.  Stronger placements seemed to be primarily in drought stressed areas. Colorado saw a large percentage increase. Other states with higher placements included California, Arizona, Idaho, Kansas and Nebraska. Iowa added 21 thousand head as well.  Texas placements fell 30 thousand head from a year ago.  Oklahoma was down 16 thousand head.