ON THE BRINK OF SPRING!
Just a month ago it was looking pretty bleak for our winter rainfall totals. Today, as I write this newsletter, it has improved but it doesn’t look like we will be anywhere close to normal. There is a nice rain event forecast for this week that may push us over 10 inches for the year. The normal rainfall for Dixon is around 16 inches and last year we had double that! At this point we can just be thankful for what we get and hope when the spring hay crops start being cut it doesn’t rain all over it! We have experienced some wild swings in temperature which is making some of our animals susceptible to pneumonia. Keep an eye on them!
FEED AND GRAIN MARKETS
We have enjoyed an extended period of stability in the grain market. Now things are starting to move upward. One factor causing this is drought conditions in Argentina leading to soybean futures hitting an 18 month high. This may influence growers to plant more soybeans which could lead to a drop in corn acres planted which will put pressure on the corn price. In April we will have been in business for 34 years! We have seen this sort of fluctuation many times!
The same sort of thing is happening with Alfalfa hay. As you drive the freeway, and especially rural roads you see more and more orchards being planted. Guess what? Less Alfalfa hay. Less planted Alfalfa = higher priced hay, it’s as simple as that! As of right now we have a wide assortment of hay choices for you. Oat hay is the one variety we may be getting low on. If your animal must have Oat and nothing else it might be wise to pick up enough to last through May or so.
NOW LET’S TALK ABOUT STEEL
Why? Steel is the stuff gates, water troughs, fencing, and posts are made of. We are experiencing price increases and in some cases multiple increases from some suppliers. To keep ahead we just ordered a full truck load of wire, and a full truck load of t-posts. This too we have seen over the years. I remember years ago talking with a salesman when steel prices were escalating at an alarming rate. I told him these companies were going to price themselves out of the market! He disagreed. Later when steel came down these companies were forced to sell their inventories below cost to get back into the market! Rough times! Anyway it is what it is!
As always we appreciate very much, our customer base and look forward to providing you with the best customer experience we possibly can! Thanks!