Friday, 08 March 2019 14:42

Lamb prices remain strong

Written by 
ASB expects prices to peak in spring 2019 in the high $7/kg range.  ASB expects prices to peak in spring 2019 in the high $7/kg range. 

Lamb prices look set to bottom out just below $7/kg as the end of the season nears, according to ASB senior rural economist Nathan Penny.

Prices have fallen more than they normally do at this time of year but, given the record highs reached in the spring, prices are bottoming out at a healthy level, Penny notes in ASB Commodities Weekly report.

Looking ahead, ASB expects prices to peak in spring 2019 in the high $7/kg range. 

“The underlying tight supply conditions that boosted last year’s prices look set to continue though weather and therefore feed availability remain swing factors as they normally are,” he says.

“If last year’s peak prices took out the gold medal, it follows that this spring may be in line for silver.”

 Demand remains strong in the US and firm in China, but traditional markets like the UK and EU continue to lose importance. 

“We will be keeping an eye on how Chinese demand holds up amid hints of a slowdown, with Beijing recently dropping its GDP growth target to 30-year low. But all up, we expect a second-successive season of healthy lamb returns.”

 

More like this

Milk powder sell-off behind price hike

A big reduction in European stocks of skim milk powder (SMP) was behind its whopping 10.3% rise in price at last week’s auction, economists concur.

 
 

» Latest Print Issues Online

The Hound

Light reading

In a follow-up to this old mutt’s piece two issues ago about Fonterra directors getting to grips with the co-op’s…

Shocking

There are many stories from ‘the impossible to believe, but believable’ files that your old mate is often told about.

 
 

» Connect with Rural News