Montana hay moving into drought-affected buying regions is delivering at $180.00 to $230.00 per load depending on freight and quality, according to the state's Sept. 18 USDA market report — one of the few hard price benchmarks in a week when most Plains hay markets traded steady but drought continued to dictate where tonnage flows.

The state-by-state reports, compiled through USDA Market News, show a region split between surplus and scarcity. Montana sellers are shipping hay south at a premium to local prices because Wyoming demand is good to very good and drought conditions there persist. Northern Montana hay remains at a discount to southern hay as sellers compete with Canadian and North Dakota supplies moving across Highway 2.

Montana's numbers carry the most detail. According to the drought monitor cited in the report, 47.02% of the state is in moderate drought or worse, down 9.69 percentage points from two weeks earlier. Severe drought or worse covers 18.09% of the state, up 0.60 points, while extreme drought or worse stands at 5.01%, up 0.61 points. Exceptional drought is at 0%, unchanged. Notably, 77.50% of Montana is abnormally dry, down 15.02 points from two weeks prior.

Those moisture shifts are already affecting feed budgets. Fall rains have improved late-season grazing in some Montana locations, lightening hay demand there. But other areas remain dry, and many ranchers worry they will start feeding hay as early as October. Some buyers have backed out of spoken-for loads as lower prices in surrounding states and Canada eased supply concerns, leaving some sellers with excess hay. Producers trying to put up third cutting are struggling to find a rain-free window.

Straw tells a different story in Montana. Demand is good to very good and supplies are light, because many producers opted to spread straw rather than bale it this year. Straw sold with higher undertones in a narrow comparison.

Price moves concentrated in pockets

Wyoming's Sept. 17 report shows most baled hay sold steady, with sun-cured hay pellets trading steady and alfalfa hay cubes selling steady to $10 higher. Demand was good to instances very good across the state. Small square bales are moving out of Wyoming for export, while significant volumes are coming in from surrounding states and farther away to supply ranchers. Spotty showers in the western part of the state have brought just enough rain to make putting up dry hay difficult.

Nebraska's Sept. 24 report shows alfalfa and grass hay bales selling steady across the state, but ground and delivered hay firmed: the central area sold steady to $10 higher, the Platte Valley sold steady, and the west sold $20 higher. Sun-cured pellets in the East sold $20 higher. Dehy pellets were steady statewide. Demand ran moderate to instances good, though several contacts noted buyer inquiry has softened a little over the last two weeks. Feedlots continue taking in silage and high-moisture corn, and secondary forages are being cut, with producers now waiting on dry-down to bale.

Colorado's Sept. 24 report shows moderate trade activity and good to very good demand for new-crop hay in all markets. Premium small squares of alfalfa sold 25 to 40 cents per bale higher, and premium small squares of prairie and meadow grass horse hay sold 50 cents per bale higher. Silage harvest remains underway. Colorado's next report is scheduled for Oct. 8.

Drought drives southern demand

Oklahoma's Sept. 18 report shows no change from the prior report: hay demand remains high, and because of drought and cattle prices, cattle producers are calling all hay producers. All types of hay are moving. The state is still seeking rain, though forecasters see some rain and cooler temperatures ahead. The next Oklahoma report releases Oct. 2.

Texas, in the same Sept. 18 reporting window, shows hay prices and demand steady. Its next report also lands Oct. 2.

South Dakota's Sept. 4 report — the oldest in this batch — shows good to very good demand for all classes of hay, with the strongest pull from western South Dakota, where drought has been severe and little hay was made this year. Grass hay supplies are limited statewide because dry April and May weather suppressed growth. Drought has also gripped the eastern side: some areas made substantially less hay than normal, while alfalfa produced pretty well in other spots.

Missouri's Sept. 18 report describes a market with ample supply and limited movement. Hay supply is moderate to heavy, and hay listed for sale is abundant, especially fair-to-good quality grass types. Demand and movement are light to moderate, and prices are steady to firm. Extreme heat continues to hold over the state. The northern half has picked up moisture and some drought improvement, but southwest and south central Missouri remain very dry, with some areas in D3, or extreme drought. Some hay feeding is already taking place, and water concerns are present. Growers fear the growing season could end before fall pasture growth materializes if moisture doesn't arrive soon. Corn harvest passed the halfway mark this week, with soybeans just starting in a few areas. The Missouri Department of Agriculture maintains a hay directory, and the University of Missouri Extension offers its feedstuff finder for buyers.

New Mexico's Sept. 25 report shows the hay market appearing firm compared with the prior report.

All state hay reports are available through USDA Market News. The next round of reports — Oct. 2 for Texas and Oklahoma, Oct. 8 for Colorado — will show whether forecast rain in the southern Plains and continued dry-down weather farther north begin to rebalance the regional price gaps that are currently pulling Montana and Wyoming-adjacent tonnage southward.