From Cattle Network:

U.S. average hay prices in the 2008-09 crop-marketing year (through May 1, 2009) will be record high.  But several factors will likely contribute to lower average hay prices in 2009-10 including: 1) lower corn and soybean meal prices; 2) much lower milk prices and dairy operations in financial stress; and 3) fewer beef cows in the U.S. herd.  Of course, regionally 2009 forage-growing conditions (pasture, range and hay) will be a key to hay prices in the months ahead and some areas of the U.S. have already posted winter precipitation shortfalls.

USDA’s National Agricultural Statistics Service released the estimated December 1, 2008 hay stocks earlier this month.  Nationally, hay stocks totaled 103.7 million tons, down less than 1 percent from a year earlier.  Of the 48 reported states, hay stocks as of December 1, 2008 were down from 2007’s in only 16 states with most of the rather large year-to-year declines reported in some Rocky Mountain states, Texas and Oklahoma.

U.S. calculated hay consumption from May 1, 2008 through December 1, 2008 was about 63.6 million tons compared to 57.8 a year earlier.  Still, U.S. May through December hay consumption in 2008 was the fourth lowest in the last 20 years due to record high hay prices.

Total hay production in the U.S. for 2008 was about 145.7 million tons, down about 1 percent compared to 2007’s.  That was the smallest since 2006 and the second smallest in the last 20 years.