If we thought the drought situation could not get any worse, we were wrong. December 1, 2022, showed a dramatic drop in hay supplies nationally down 9% from last year and more than 6% below the previous record. Extreme changes in supplies occurred in the Southern Plains but reached into Nebraska, Colorado and Missouri. The majority of states east of the Mississippi saw lower stocks relative to last year.

The first few weeks of 2023 have seen early weaned feeder pig prices (10-12 lbs.) start to move seasonally higher with last week at $63.90 per head which is 3.8% above the prior weeks $61.57 per head. A year ago, weaned feeder pig prices did not crest $60 per head until late January which suggests there may be some optimism in the market. Seasonally, weaned feeder pig prices typically peak during January or February and last year the peak was $83.29 per head in mid-February.

            December Cattle on Feed indicated it was 3% below a year ago, or 312 thousand short of last year. States with cattle on feed inventories over a year ago included Idaho, Iowa, and Washington. Marketings of cattle were 6% lower, hurt by a late December snow storm impacting hauling and slaughter facilities.  Placements on the month were down about 8% or about 150 thousand head from 2021. California, Idaho, Minnesota, and Washington all had year over year increases in Cattle placed but are relatively small cattle feeding states.