The Sheep Deer and Cattle Report: Hopefully lamb prices have bottomed as now wool has gone off the boil, and cull cow prices plummet on over supply and easing US demand

LAMB

More subdued schedules this week, but exporters report good early UK Easter sales and improving demand out of the Middle East and with one small processor lifting maybe the bottom has been reached.

Processing statistics remain well ahead for both lamb and sheep meats and concerns are being expressed for supply to meet loyal customer requirements later in the season although at present waiting times in the south are at least two weeks before space becomes avaliable.

Prime lambs sold at the local saleyards dropped to yearly lows last week, and are now at $83/head in the south and at $90 in the north, back to levels not seen for 3 years and well below the cost of production.

Rams are out to a much reduced ewe flock in North Canterbury dry areas, and next year’s production is likely to fall further in the face of these poor returns.

WOOL
The South Island sale saw prices fall and passings rise to 19% as the wool market loses momentum, and the finer crossbred and lambs indicators are now close to last year’s levels.

Chancellor of Lincoln University Tom Lambie retires after his term was tainted by conflict with staff under the Andy West era, and the covert introduction by the new vice chancellor.

The planned release of a new rabbit virus that targets those animals that have become resistant to the last one will be welcomed in the dry wool growing areas by farmers that are spending big money controlling these persistant pests.

BEEF
Some easing of prime schedules this week although exporters report good Asian interest, but with the dairy cow kill building and US demand low, cow schedules also fell.

Big numbers  of cull dairy cows are again appearing at saleyards and they also fell in price as some space limitations and this weakening US demand had buyers adjusting backwards dramatically.

As South Island local trade prices eased, so did prices at the Canterbury saleyards and values for prime steers are now back to where they were last year, and North Island prices fell in a similar fashion.

North Island weaner sales have been selling for $3.60-3.70c/kg lwt for heavy males and even more for smaller steers to provide a great return for breeders, but whether southern sales will be quite as bouyant is yet to be seen, although there appears to be plenty of surplus feed around.

Some overseas analysts are suggesting a correction in beef may soon occur pointing to the large price differential with pork and chicken, and the growing numbers of animals held by the big beef producing nations of the world.

DEER

More stable schedules this week as exporters report frozen contracts are complete and now change to the new focus of the new European game season.

Paddock sales of weaners have been making $4.50/kg lwt, with smalls lower at $3.80, and young replacement hinds in demand at $450 /hd and some suggestion that IC hinds could reach $600/hd in the spring.

This newly felt optimism is well overdue for this industry but will not be secure until the female kill drops below 50%.