Hay Daily News: Dallas, TX | December 29, 2006

Yes, hay is acquiring abbreviated and we are on the job off of barn keep reserves at this juncture. So, not individual will we see an put on in hay charge due to the end of the hay season, but we will touch it even more (our pocket books, that is) because this keep hay has been "put up" in the barn through the period of time by the hay producers.

"Put Up" you can ask? Basically that equates to a $0.30 - $0.50 per sheaf expenditure to the originator to stockpile his hay (load the bale of hay from the field onto a trailer, shove the layabout to the hay farm building - empty out the sheaf of hay from the trailer, and heap the sheaf of hay in the hay farm building). In general, that's why you'll discovery a inequality in the cost "in the field" vs "out of the barn".

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To make matters worse, everyone who has hay true now knows its reward and approaching value. This twelvemonth is and will be an gripping tryout of persona for our hay producers!

Market prices wide will too be ostentatious by seemingly unaccountable blips on a graph. Here's what I tight...do you call up in June/early July 2006 once hay prices went sky advanced for roughly speaking 2 weeks consequently ordained rearward into their stable cost incline?

Well, we are roughly speaking to go through the selfsame variety of phenomenon, but its due to a flattering contrary well and at primary glance, it's not going to put together any import at all. So what's just about to happen?

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Well, belatedly spring, archeozoic time of year 2006, apprehension hay producers/brokers/investors completed that the hay shortage was going to be bad...really bad. So, as most understanding investors be given to do, they endowed - at the right clip and with a proposal.

That aim was to pull fresh-cut hay cuttings off the flea market or not to untie them at all - put them in the farm building and hoard them until hay prices hit "price mark 1". At height 1, they will release, for example, 20-30% of this hay. Result - we will see a completely brief term standardization in hay prices.

This trend will carry on and we will see the assorted levels / plateaus on a graph, until each person is totally out of hay. And each hay investor's stand string is different, so we'll probable touch the striking regionally a bit than on a countrywide proof.

For example, a bale of Coastal or Alicia Bermuda Hay could be purchased (resale price) for $2.50 - $3.50 past due season/early time of year 2006. By the incident mid dribble arrived, that aforementioned sheaf cost $4.50 - $5.00 in the grazing land. Now, in the farm building (add $0.50) and subsidence into winter, you are active to find that same bale of hay priced between $4.50 and $8.00!

Yes, that's moderately a range, I know. But, the 2006 hay time period has wrong-side-out into the wild western as the gap relating supply and emergency grows large respectively and every day.

Another unputdownable factor to make a note of is that, in general, the hay originator or tradition baler's net profit is well-nigh ever in the quaternary or end extract of the period. So, you could believe how it could be enticing for them to seizing on as lengthy as practical.

Theory and reasoning aside, in the adjacent edition, I will be division my accepted wisdom beside you on what to do NOW in the region of your picky hay circumstances...

Copyright 2006 Hay-Bale.com

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