WESTERN MARKET UPDATE
California volume rebounds while Oregon movement slows
California reported stronger confirmed tonnage and firm demand across dairy, retail, dry-cow, and stock channels. Oregon demand remained good, but rainstorms, fuel costs, and rain damage reduced movement.
What changed
California confirmed 25,550 hay tons, up from 8,673, while reported bale volume declined to 44,544. Oregon confirmed 1,195 tons, down from 14,225, and reported 1,024 bales. Confirmed-trade volume can change sharply with the timing and size of transactions; it is not total production or a standalone price signal.
California: demand broadens and tonnage rises
USDA described trade activity and dairy and retail demand as good, with dry-cow and stock hay in very good demand. In the North Intermountain region, Supreme contracted large-square alfalfa traded at $220–$240 per ton FOB, Premium/Supreme contracted hay at $260, and Premium dairy alfalfa at $240–$250. Good dairy alfalfa traded at $200–$210, while a larger Good lot sold to a dealer or processor at $230.
Premium three-tie retail alfalfa traded from $13 to $15 per bale in reported North Intermountain transactions. Premium orchardgrass traded at $18 per bale, including contracted fourth- and fifth-cutting lots. Other California regions and grades carried different values, including rain-damaged and grassy hay at discounts.
Oregon: weather and fuel constrain movement
Demand for all hay qualities was described as good, but movement decreased statewide due to rainstorms and fuel prices. USDA noted that a large amount of third crop was rained on in the windrow and bale, while ranchers slowed feeder-hay buying.
Good Eastern Oregon alfalfa traded at $250 per ton FOB. Premium Klamath Basin orchardgrass traded at $17 per bale. In Lake County, Good rain-damaged alfalfa traded at $200 and $180–$185 per ton FOB, while Good two-way forage mix traded at $155. Northeast Good alfalfa traded at $220 FOB to farm and ranch buyers.
Drought and operating pressure
Oregon’s report placed 88% of the state in moderate drought or worse, 58% in severe drought or worse, 24% in extreme drought or worse, and 4% in exceptional drought. Fuel remains a reported constraint on movement, so delivered quotes and hauling decisions should be refreshed frequently.
What to watch next
- California volume: Whether the rebound repeats or reflects several large, time-specific trades.
- Dry-cow demand: Whether very good demand continues into the next reporting period.
- Oregon quality: The discount between clean hay and third crop affected by rain.
- Freight: Whether fuel costs continue to suppress Oregon movement and widen delivered-price differences.
- Segregation: Keep Premium retail and dairy lots separate from rain-damaged, grassy, and stock-hay inventories.
Manager’s bottom line
California’s stronger tonnage and broad demand are constructive, but large transactions and contract terms still shape the averages. Oregon’s lower movement is tied to weather and fuel as well as buyer behavior. Price each lot to its actual grade, end market, and freight exposure rather than treating either state as one uniform market.
Sources: USDA California Direct Hay Report, September 25, 2026; USDA Oregon Direct Hay Report, September 24, 2026. GB Hay commentary is AI-assisted. Confirm grade, bale weight, terms, freight, and live bids before transacting.