The Sheep Deer and Cattle Report: Venison and beef schedules begin to move and wool continues it's momentum

BEEF

Beef schedules have started to move off their recent levels, as the big cow kill has passed and demand returns for winter prime stock.

Demand in the US remains strong as the US grilling season starts, and NZ producers can look forward to a period of sustainable pricing, helped recently by NZ’s easing currency against the US.

Saleyard prime steers in the south are creeping up in price as shortages loom with the early drought induced kill, but values have remained steady in the North Island as managers look to increase weight and sell in the predicted supply shorted spring.

LAMB

The news from the lamb markets is still gloomy, although some upward schedule movements has been seen, as chilled markets start to dominate present processing numbers.

Indications are that some companies are carrying stocks into the winter, and are comfortable with the knowledge that the kill statistics are ahead and supply will at some stage will be compromised.

More signs that all is not well in the sheep sector, with last week the largest ever live shipment of 45,000 mated hoggets leaving from Timaru for Mexico earning farmers a bonus of $$35-$45 a head, and removing throughput to the processing sector.

The Meat Industry Excellence group has come up with a plan for reinvigorating the red meat industry, but whether the two Co-Operatives believe it is palatable is yet to be revealed, and most believe the status quo is not a long term option.

Winter contracts for lamb are sitting in the $5.20-$5.80 range and look unlikely to rise in the spring, and prime lambs at saleyards are selling close to lows for the year with little premium being paid for wintering.

Store lamb sales at saleyards have also been static since March as traders reflect the static prime lamb demand in their purchase price.

More capital stock sales are being seen out of the North Canterbury area as farmers are having to make the tough decisions on whether to buy in more supplementary feed, or sell and wait for rain to replenish pasture growth.

WOOL

Wools momentum continues at auction with the latest NI offering producing strong pricing of mainly second shear and a near complete clearance, although indicator prices did ease back on the last SI sale.

Soft supply is driving demand with yearly bale numbers down 13% at auction and total volumes 5% back, although in this rising market auction numbers could return.

Next weeks SI auction has been cancelled due to insufficient wool coming forward, and lack of stocks in brokers stores illustrates just how soft supply really is.

DEER

Venison schedules have begun to lift as processors begin to enter the chilled product season, in a market low in stocks and a currency at last helping stimulate competitive pricing.

A quiet optimism is emerging in the industry that the bottom has been reached, and that farmers will again invest in managed growth by retaining more females.