Processor positivity and propitious climatic conditions pushing demand and supporting plenty of activity as farmers prepare for the winter.

Strong markets for red meat, and generally kind early winter weather are enabling farmers to make trading decisions from a position of strength.

In the North Island prices for prime beef are close to $10, with lamb heading towards $12. Store lambs have frequently transacted above $200, in-lamb ewes for $300 or more, and heavy store cattle at around $3000.

Plenty of lambs are going through the yards. Farmers are taking advantage of high store prices, aiming to use their winter feed for their ewes.

Among South Island farmers, interest in North Island lambs was apparent in June, representing the only way to secure larger numbers and therefore fully utilise feed, which is generally adequate across most districts, albeit a few regions could use some rain.

South Island processors are chasing cattle, with most cows coming through processing plants either on contract or at prices close to contract levels, around $8 per kilogram. The South Island cow market should stabilise in July, especially as some processing capacity goes offline, consistent with seasonal norms.

Other notable cross strait livestock traffic includes forward contracts for dairy herds, for delivery next June, almost a year in the future. Several 500 cow Waikato herds sold recently, targeted by farmers converting Canterbury farms to dairy whose banks won’t release finance unless cows are already procured. 

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