Store stock prices forecast to fall

Store stock prices look set for a major correction, with many observers believing current values were inflated by plentiful grass and unrelated to prime stock prices. Store lamb prices have only recently started falling from about $2.20 a kg liveweight, while calf sale prices have started about $2 a kg liveweight, with many vendors receiving values similar to last year reports The ODT. There appears little doubt a grass market has driven up prices, but agents and industry observers say that could be about to change, as the area experiencing dry conditions expands and autumn conditions start to bite.Sources say some farmers still have store lambs for sale while the dry conditions may force farmers who traditionally take calves through to spring to quit them at the autumn weaner sales, adding to supply pressures. Blame for the high store stock prices has been variously levelled at the Silver Fern Farms lamb plan scheme for underpinning the market and also at third party traders competing for fewer animals. SFF chief executive Keith Cooper said store prices were falling, but because the company bought only directly and not at auction, it was not leading the pricing. It did not pay auction costs or commission, and last week was paying between $2 and $2.05 a kg liveweight. Alliance Chief Grant Cuff said the flow of prime stock had picked up since mid-March and was matching capacity, no doubt helped by signs autumn was drawing near and the area of the country suffering from dry conditions was expanding. Mr Davison said the more favourable season has seen cumulative average slaughter weights increase 2.4% to 17.6kg compared to last year.