This is causing some delays and frustration for farmers looking to drop prime and bulls quickly due to the dry. Delays of one to two weeks are fairly common with some out to 3 weeks. Cow prices continue to drop due simply to the weight of numbers. Bull and steer prices are slightly more stable. Holes in the kill are looming – it's just a question of when they appear. The cow kill will be well advance if kill rates continue at current levels through March.
US imported beef prices move higher
The high NZ cow kill has been pressuring the US imported beef market with US buyers bidding prices down on the back of our abundant supplies. NZ Feb cow slaughter was up 107% (or 46,000 hd) on a year ago levels and the desperate conditions in the North island will only serve to keep them coming. The run of NZ cow meat usually combines with the start of grilling season in the US which underpins prices but this year the cows have come early due to the drought. This has been pressuring returns with imported 90CL cow meat dropping US12c/lb since the end of Jan. But the tide appears to be turning with enquiry on the up for 95CL bull beef in particular. US imported beef prices have moved higher in the last week. It appears that many US buyers have sold forward and want to buy before prices seasonally climb.
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Market Briefs by iFarm.co.nz iFarm the leading source of agri-market prices, information and analysis for NZ farmers. Receive benchmark prices for the works, store and saleyard markets delivered direct to your inbox. Visit www.ifarm.co.nz or call 0508 873 283.
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