LAMB
Schedules bottomed out this week, as markets look to the Middle East and the Ramadan festival for direction in what used to be a very influential regowoion for lamb sales.
The mutton market has also stabilized at it’s present lows, but at least the Chinese markets are showing some signs of recovery.
The local trade lamb schedules are still falling and average prices for prime lambs at the local saleyards are now in the low $90’s.
With cropping farmers now well through their harvest, interest in winter store lambs has increased, as the dairy downturn will reduce the livestock options for this period but margins will be tight based on current prime lamb returns.
The dry has returned to many areas of New Zealand and with March arriving and feed grown at this time of year so valuable and able to be put through a multitude of stock classes earning a good return, finishing lambs may go down on the priority list.
WOOL
Only one sale in the south this week, but the reduced volumes offered restimulated the market, with both crossbred indicators lifting in price with fine crossbred lifting back to 600c/clean and coarse back to 579c/kg.
Lambs wool prices continued to fall off their recent highs with only finer micron offerings making over $7/kg clean, and coarser fibres attracting less interest.
Quality second shear is now being harvested from the two tooth replacements and steady demand via contracts has underpinned these wool types.
BEEF
Stable beef schedules rule the week as supply shortages have kept demand strong for processors to meet their regular customers requirements.
South Island values for prime cattle sold at the saleyards have remained firm and well ahead of the north, and allowed finishers more profit on smaller animals at a time of year prices traditionally bottom.
Ravensdown announced another drop in urea prices by $20/tonne and they are now at their lowest level since 2007 providing some cost relief for cash strapped farmers.
DEER
All venison exporters are reporting positively about sales and interest in frozen product, as the sector is reinvigorated by the present returns as the schedule remains unchanged.
Managers are now focused on weaning and planning the countdown for the spring yearling chilled harvest, which if managed well, can provide strong returns for animals that reach their target weight early.
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