2022 Bull Calves Available

amid the pressure of mounting supplies. Export markets have been less affected. Overall, U.S. chicken remains supported by global markets despite the weakening fundamentals at home.

Shrinking market-ready fed cattle supplies are bullish for cattle prices, but beef prices have drifted down from their summer highs. While retailers provided modest relief at the meat case during the fourth quarter, and a discount to year ago levels, consumer demand remained resilient despite comparatively high prices. At the wholesale level, however, beef prices have dropped from their elevated levels. From January highs to December lows, the boxed beef cutout lost 15 percent of its value. Processor margins suffered through the fourth quarter due to moderating beef prices and higher operating costs.

Nearby lean hog futures accelerated quickly to begin 2022 and had gained 68 percent in value by late July, peaking at $122/ cwt. Hogs retained much of that support through the third quarter. But despite tight hog supplies, valuation succumbed to the pressure of seasonal tendencies and processing limitations during the fourth quarter. The lean hog index dropped into the upper $70s to end the year, and the hog market appears poised for a significant bounce in 2023.

U.S. milk prices continued softening in the fourth quarter with Class III milk futures falling 5 percent. Butter prices have also fallen in a faster-than-expected retreat. Spot butter prices are down nearly 10 percent from the record highs scored in October. Record large total U.S. dairy exports for 2022 carried through the fourth quarter, underpinned by recent weakening of the U.S. dollar. However, the outlook for U.S. exports in the first half of 2023 is deteriorating. Dairy product prices are expected to grind lower as post-holiday season demand wanes amid uncertain global demand.

Power, Water & Communications

Higher energy costs will continue to squeeze the majority of U.S. consumers this year. Nearly half of all U.S. households heat primarily with natural gas and they will spend 28 percent more to do so this winter, according to the U.S. Energy Information Administration. The cost of electricity this season is also set to increase, with consumers likely to notice a 10 percent seasonal adjustment in their bill. Unfortunately, high energy costs have a cascading effect, feeding inflation and hampering economic growth.. ▫

BE SET IN YOUR WAYS OR SET ON IMPROVING THEM.

There’s no escaping change. Especially when you’re trying to keep pace with a growing nation. So when the time comes to buy new equipment, purchase land or expand your operation, Ag New Mexico Farm Credit will be there. We give rural New Mexico access to the financial support it needs to never stop growing.