Markets progressing favourably despite feed risk.

Although limited recent rain has greened up the paddocks, most of the east coast of the South Island is still dry. More moisture is required to enable the grass to grow before the temperature drops. If this does not come through, farmers will be facing a challenge to maintain enough feed to take them through the winter.

Strong demand has been evident in South Island store lamb sales. Winter and spring schedules are driving demand, pointing to contracts in the $8 to $9 range this year.

Meanwhile the South Island’s last calf sales have been and gone for the year. Late in the season, the Blenheim high country sale attracted plenty of North Island interest, which provided strong support and boosted prices.

Looking ahead, the outlook for this year’s cattle market is positive, and prices for both manufacturing and prime beef bode well. Once the processors have eliminated the backlog, we should see an increase in the schedules.

Shane Gerken, PGG Wrightson South Island Livestock Manager