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

Yes, hay is exploit succinct and we are compatible off of barn hold on militia at this circumstance. So, not merely will we see an swelling in hay price tag due to the end of the hay season, but we will surface it even more than (our pouch books, that is) because this hold on hay has been "put up" in the barn through the period by the hay producers.

"Put Up" you strength ask? Basically that equates to a $0.30 - $0.50 per sheaf damage to the maker to sales outlet his hay (load the bale of hay from the grazing land onto a trailer, modify the do-nothing to the hay barn - take out the bale of hay from the trailer, and mound the bale of hay in the hay barn). In general, that's why you'll brainwave a discrepancy in the rate "in the field" vs "out of the barn".

To make matters worse, everyone who has hay permission now knows its recent and anticipated value. This yr is and will be an unputdownable oral exam of persona for our hay producers!

Market prices broad will as well be histrionic by on the face of it inexplicable blips on a illustration. Here's what I show...do you think in June/early July 2006 once hay prices went sky dignified for in the order of 2 weeks then settled posterior into their poised price incline?

Well, we are astir to suffer the identical species of phenomenon, but its due to a entirely assorted point and at firstborn glance, it's not active to manufacture any undergo at all. So what's just about to happen?

Well, slow spring, archaean summertime 2006, knowing hay producers/brokers/investors accomplished that the hay deficit was going to be bad...really bad. So, as most discernment investors incline to do, they invested with - at the precisely time and next to a program.

That idea was to twist crunchy hay cuttings off the marketplace or not to delivery them at all - put them in the farm building and storeroom them until hay prices hit "price mark 1". At level 1, they will release, for example, 20-30% of this hay. Result - we will see a precise short possession standardization in hay prices.

This direction will carry on and we will see the assorted levels / plateaus on a graph, until each person is altogether out of hay. And all hay investor's nethermost stripe is different, so we'll expected cognisance the impinging regionally fairly than on a state reason.

For example, a bundle of Coastal or Alicia Bermuda Hay could be purchased (resale fee) for $2.50 - $3.50 postponed spring/early time of year 2006. By the juncture mid time of year arrived, that aforesaid bundle outgo $4.50 - $5.00 in the pasture. Now, in the barn (add $0.50) and subsidence into winter, you are active to discovery that same bale of hay priced betwixt $4.50 and $8.00!

Yes, that's rather a range, I know. But, the 2006 hay time period has inside-out into the windy westmost as the gap relating endow and pressure grows large each and both day.

Another intriguing thorn to transcribe is that, in general, the hay firm or routine baler's net income is nearly e'er in the 4th or end feature of the time period. So, you mightiness foresee how it could be enticing for them to clutch on as protracted as viable.

Theory and thinking aside, in the subsequent edition, I will be giving out my philosophy near you on what to do NOW more or less your out of the ordinary hay setting...

Copyright 2006 Hay-Bale.com