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14 February 2018
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Market Commentary

Livestock Update February 2018

South Island Sheep and Beef

The two halves of the South Island couldn't be in more of a contrast. Otago and Southland have become very dry as hot conditions prevail. Whilst Canterbury north have had good rainfalls taking the pressure off, as farmers use the extra feed to put weight on animals. The main focus has been selling store lambs throughout the South Island. As well as the normal calendared sales the dry conditions experienced down South has resulted in a lot more lambs being sold, mainly into the Canterbury region.

Again cattle prices in the top half of the South Island have remained relatively strong due to good feed conditions where the bottom half of the South Island cattle pricing has come under pressure.     

Dairy

Most of the country is experiencing reasonable summer growing conditions with some areas starting to dry out - the exception being Central Otago and Southland. Parts of these areas are receiving record temperatures and no rain.

Forward sales of herds and heifers continue to be reasonably flat, confidence in the market is being hampered by the fluctuation in the GDT auctions, financial pressure and the creep of Micoplasma Bovis. It is anticipated activity will increase over the next few months.

International Dairy Week in Victoria, Australia

International Dairy Week in Victoria, Australia was attended in late January, an event that showcases elite dairy genetics from across Australia. Animals are entered in their respective classes and judged with some featuring in auction sales. The event is also well supported by numerous trade and machinery displays - the event is well worth attending.

Genetics

Late January and early February is an “in between time” for genetics’,  one day we are selecting rams the next day we are looking at bulls for the revamped national bull sale.  

This year all the cattle at the newly named and formatted “PGG Wrightson National Combined Video Sale” will be sold by video. Clients will be able to view the Hereford and Angus bulls on the morning of Monday 14th of May at the respective units prior to the sale in the evening.  

With autumn not far away it is time for dispersal sales, Tom Suttor recently conducted the dispersal of the Woodlynd Hereford Stud on account of Roger & Penny Wanklyn on Monday, 12 February. The results were M/age Cows sold 57/57 @ $2487 average, Heifers sold 65/65 @ $2100 average, Bull calves 43/43 @ $1450 average and Heifer calves 37/37 @ $1191 average. Ian and Karen Borck of Springdale Angus will disperse their herd on Thursday, 12 April.

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