Livestock Market Essentials
(9th October 2017)
Brought to you by Heartland Bank and AgriHQ
Beef Market Update
There’s a slow shift in conditions through both island’s. The prolonged spell of wet and cool weather, especially in the western North Island, is making way for drier and warmer conditions, though nothing out of the ordinary for Spring. Conditions have been close to ideal for lambing, with very good survivability reported through the entire country. The latest Metservice outlook for October predicts a drier than typical month for nearly all areas, with only Northland, the East Coast and Marlborough the exceptions.
Signals around beef schedules have been mixed. Printed schedules have moved in both directions, though operating prices (schedules plus premiums) were mainly unmoved. The South Island market is especially variable, with some processors willing to compete with the strong local trade prices, while other are content with taking a more passive position.
Market conditions for manufacturing beef have improved with a lower dollar and firmer US market. However, processors are not optimistic that the US imported beef market will remain positive, so would still like to see manufacturing prices back on current levels.
Sheep Market Update
Change was hard to find for lambs lately. A solid run of numbers have kept operating prices (schedules plus premiums) unchanged since mid-September. The first of the new season lambs look set to appear mid-October, although a good dose of sunshine and warmth is required to boost growth rates for many of these lambs.
Mutton is benefiting from NZ's freshly granted approval to ship chilled product. Some meat companies are reporting good demand for chilled mutton, particularly if shipped in carcass form, to allow further processing in China. Reports suggest that the premium achievable for chilled mutton narrows the price gap between mutton and lamb considerably.
Heartland Bank is proud to have teamed up with AgriHQ earlier this year to form a joint partnership.
Together we were able to launch the AgriHQ Finisher Tool which was developed with the intention to make livestock buying decisions easier for farmers today.
To read more about our partnership and the AgriHQ Finisher Tool click here.
Commentary provided and written by AgriHQ and the opinions expressed in the commentary are solely those of AgriHQ not necessarily those of Heartland Bank
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