The Sheep Deer and Cattle Report: Crossbred wool bottoms at auction while beef and lamb schedules keep falling

LAMB

With only a week or so remaining in the Christmas chilled production window, reports thus far suggest trade is good despite producers battling with a stronger NZ dollar.

Indications are that UK retailers have less appetite for NZ lamb at Christmas and supply of domestic UK lamb is coming later this year, which only increases competition for shelf space.

Some companies schedules are showing a softer tone as the Christmas premium starts to come off.

Some better news is there are signs  Chinese demand for the coming New Year celebrations is increasing. Middle Eastern demand is also picking up and the North American market remains firm.

Down on northern farms some reports are being made of lower than normal docking percentages, with the dry autumn and spring snow in some regions taking its toll.

Much of the North Island is also very wet and young lambs will not enjoy these conditions of lack of sunshine and muddy pastures.

However the south has had very favourable lambing conditions and recent rain has boosted feed and all stock should be doing well.

The difficulties faced by this sector are clearly visible with average prices over a 12-month period being back at levels last seen in 2008/09.

The saleyard markets are starting to fill with new seasons spring lambs with better prime animals reaching $100/hd and top stores reaching $80.

WOOL
Auctions in both Islands attracted good support, despite the firmer currency. Tight supply and more interest from China, especially for quick shipment, underpinned the demand.

Coarse crossbred wools were in demand in both Islands, and in the South, there was also demand for merino and fine crossbred, but the mid micron indicator fell by 47c/kg clean.

Crossbred prices lifted from the lows of two weeks ago even in the face of the stronger currency, and it is hoped further rises will be stimulated by the lower supply.

More market interest from China added to the continuing interest from Europe, the Middle East, and India.

BEEF
Negative US sentiment is continuing and trade is limited due to little appetite for imported meat.

NZ schedules fell again this week especially in the manufacturing, bull and cow grades in a reflection of the US weakness but prime animals are still in demand for the chilled market.

The increasing volumes of domestic protein in the US carries the risk of prices falling sharply.

Demand from China is expected to lift as they move into a period of higher demand. There is currently a supply gap left by Australia and expectations are price increases will follow.

This of course will depend on how actively the South Americans try and compete to fill the supply void.

Strong feed supplies have been stimulating the store beef saleyard market ahead of export expectations, and with the weathermen suggesting rain over the summer prices could hold for a while yet.

Prices are starting to ease for prime saleyard steers and once more animals come onto the market and these need to be replaced, prices should readjust downwards to remain profitable.

DEER

Demand for NZ venison continues and everyone is fully aware of current shortages in supply. Importers are looking ahead at their future requirements and trying to lock in supplies.

With the shortage of venison being an issue supplies of alternatives, pork and poultry is increasing and there is a distinct price disparity between the proteins.

One major company has been easing schedules back from the peak as the deadline for the European game season looms.

Silver Fern Farms has announced a proposal to close the Mossburn venison plant, as it looks to improve its processing efficencies of nearby plants.