LAMB
Another lift in lamb schedules this week, as the ramifications of Brexit are still being assessed by the market, and the chilled Christmas UK trade negotiations face an uncertain climate.
Lamb production has hit historical lows for this time of year and stocks carried by processors are similarly short, helping to drive demand.
The local trade prices are lifting with export values and the summer/autumns early kill is about to expose itself in spring shortages.
The Chinese and Middle East markets are lifting even at this quiet time of year, and with North America also strong, these other countries could fill the gaps from the UK.
This weeks snow and very cold wet conditions will have claimed a few early lambs in the foothills of the north island, but most other areas lambing were at a lower altitude and able to cope with the elements.
Dr Everett-Hincks won a science award for her work on improving lamb survival, the importance of which is amplified for any lambs born over the last few days.
Two good results from farm services firms with both Ravensdown and PGG Wrightson reporting much improved profits, and the fertiliser firm’s big rebate will be a welcome help to farmers cashflow requirements.
WOOL
This week’s small South Island wool sale saw values remaining stable for crossbred fibre, but mid micron and merino wools received good lifts in price.
Vendors still believe there was more upside to the market and passed 26% of the sale, and brokers are hopeful the indecision of the market post Brexit, has passed.
Primary Wool Co-operative has bought back the Bruce Woollen Mill yarn spinning business from the receivers and is looking to get it going again, after the Wool Equities company went broke.
BEEF
A small drop for beef schedules this week, but seasonal lows and light stocks keep demand strong as local trade prices keep lifting.
The long awaited entry of Brazil into the US market could dampen NZ’s influence in that country, but at this stage big shortfalls from Australia should minimize the impact.
Prices for store stock are still running hot and appear to be ahead of export demand and bring warnings from Rabobank that these prices appear unsustainable.
Agents report young cattle are under heavy demand as farmers are looking to purchase early before spring growth, as plentiful supplements in surplus after a mild winter, should tide them over until grass growth starts.
Processors have also been active in northern saleyards as older animals are heavier than normal and in good condition, and should reach harvestable weights easily with spring growth.
Some areas where wet weather has left soils saturated have seen farmers bale out of store cattle , but other areas with feed met the demand and strong sales were made.
DEER
Early season production has started and chilled in market prices for venison are the best for five years and schedules lifted again this week.
Exporters are concerned that at these levels the product could price itself off the market, and point to the currency as being most unhelpful at this stage to bring these values back to the farm gate.
Snow in the foothills of the Hawkes Bay and Taupo region will test those finishing deer in these areas, and reduce numbers reaching target weights for early season venison contracts.
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