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Lamb price trends
Again more lifts in lamb schedule pricing as the new season looms, and processors are competing hard for farmers to commit for the season and are offering premiums for loyalty and volumes of animals offered.
They too will welcome the recent drop in the currency which is now below Beef and Lamb NZ’s indicative forecast level but a sustained period at these rates will be needed before surety of predicted pricing can be assured.
Some losses will have been sustained with the recent cold snap in the south but nationally the weather at lambing has been excellent and tailing tallies should be above average.
The Meat Industry Excellence group has been putting facts behind their assertions with survey research revealing farmers support a big Co-Operative and a commitment to contracts.
They also believe savings of $400-$450 million can be made in supply chain efficiencies in the red meat sector as they look to make changes that will return livestock farming back to long term profitability.
Sheep farmers have indicated in the farm confidence survey they plan to increase on farm investment as this sector fights back in the land use changes.
The livestock processing numbers show once again high mutton processing volumes that analysts predict will come to an end and should put supply pressure on prices later on in the season.
Saleyard prime lamb prices reached yearly highs last week and while well shy of the levels seen in 2011, are at prices farmers are willing to invest and profit from in the future.
The South Island wool sale saw strong prices continue as the market responded to an easier currency and low supply and there was also a lift in mid micron values as well as the crossbred wool offered.
The North Island wool sale saw strong prices on an upward trend as the market responded to the falling currency and tight shipping deadlines in a short supplied market.
The wool levy vote is now being taken with proponents still passionate on their stances and in a surprise announcement Merino NZ is considering trading in crossbred wools.
The present strength and stability of the wool market will not be helping the wool levy proponents as the voting period comes to an end with reports only 40% have voted.
The receiver has extended offers for Christchurch Yarns by a month as wool investors from Primary Wools organize funds to purchase this downstream business.
To view Chart for mid micron, coarse and fine crossbred indicators CLICK HERE
CLICK HERE for currency trends.
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