The Sheep Deer and Cattle Report: Wool prices drop further as summer looms in the south with the start of the drying winds

The Sheep Deer and Cattle Report: Wool prices drop further as summer looms in the south with the start of the drying winds

LAMB

Delays in the lamb kill due to the feed conditions and low price predictions, have prevented the schedules from falling as quick as the market indicate they should.

In North Canterbury store lambs have ranged from $2.70-$3/kg with a maximum of $80/hd while in the North Island with more on farm sales the prices are easing as the season moves on.

The winds from the west have started late this year in the south island but soon the drying pastures will be the trigger for farmers to start to quit store lambs, send prime animals to the works and allow processors to ease schedules back to where the market says they should be. 

The Crown is to invest $3.4 million in the Hurunui Water Project and will give hope to many farmers in the area who have battled for years with regular droughts.

A new CEO has been appointed to lead ANZCO into the future and it is hoped Peter Conley will drive change and innovation into the sector like the past leadership team did, and revive on farm profits back to sustainable levels again.

A large scale home kill operation has been intercepted in Auckland by MPI, and farmers will be pleased to see officials hard line stance in this area, reinforcing the importance of food safety and closing another outlet for stock theft.

The Silver Fern Farms Shanghai partnership is to be started before the early January 2017 commencement date, as the venture looks to hit the ground running, and inject new impetus to a deflated sheep and beef sector.

 

WOOL
Another North Island auction and more off the same, with prices easing further with only focused buying in the 72% clearance rate.

Real concerns now exist for values during the summer shear and wool grower’s confidence has plummeted for their product, after enjoying the last three years with respectable wool prices.

However the merino market continues to move in the opposite direction with strong demand at the Melbourne auction with some of the earthquake affected stations wool of Marlborough topping the hogget sale prices.

H. Dawson Direct has closed down its operation last week as a result of the poor market conditions, although Segard Masurel have taken a much longer term view, and filled the gap for many of its customers.

BEEF
A mainly stable week for beef schedules as feed also rules the beef market, but good demand for chilled beef in the Asian, Middle East, and domestic markets, has slowed traditional early summer price easing.

More of the same at saleyards, where shortages of stock due to feed and past droughts, have kept demand very strong especially in the South Island where values for prime steers have lifted in the last 3 weeks.

In the North Island dairy weaner bulls are still selling strongly in the 500-600c/kg range for animals between 100-120kg liveweight.

B&LNZ Genetics and M&L Australia are joint funding a beef research project that looks into beef cow profitability through their maternal traits, and the finishing performance of their progeny.

DEER
More traditional easing of summer schedules as October processing volumes again lag well behind last year.

Processors report strong interest in frozen product until Christmas, but future demand will be determined by the sales to date.

Wapiti sires at last have been introduced to the Deer Select sire summary, and with the good weather in the south many are reporting fawning started a week to 10 days early this year.

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