December 2011

Again an easing of schedules as increasing volumes of lambs become available for processing, although one company has set a summer price standard with $7-$7.30/kg CWT contracts for the January February period.

With much of NZ’s lamb sold into the European market where many countries economies are in difficulty, the present record prices are unsustainable, but a world shortage of supply of the product and many markets should result in prices holding to sustainable levels.

Early sales of breeding ewes resulted in excellent prices that will encourage future reinvestment in the sheep sector and a rebuilding of stock numbers.

February- March mutton contracts remain firm reflecting tight supply from previous year’s heavy culls, and store lamb supply is restricted by feed conditions and premiums for processed stock.

CLICK HERE for store lamb charts

 The trend is falling. And at 747c/kg average it is  177c/kg ahead of last year.

The currency has now at  0.49p to the Pound and at .57 for the Euro.

CLICK HERE for currency trends.

WOOL

Wool prices have continued to be strong for 9 months now, but still the industry refuses to unite on a long term sustainability plan.

Shortage of supply is the main driver of the current products rise in value, but in the cyclical system of agricultural commodity pricing, an industry driven marketing and brand plan will be needed to maintain the present values.

Farmers through Wool Co need to decide whether they want monopolistic control over wools scouring facilities or to invest in a wool co-operative that could help drive the value of their product in the future.

 To view Chart for mid micron, coarse and fine crossbred indicators CLICK HERE