STORE MARKET REPORT | R2yr steer prices soar at saleyards

There is still plenty of demand for store cattle but numbers are very limited. With moisture levels pretty good around the North Island as we head for spring, many farmers are on the hunt for cattle in anticipation of a shortage and a strong grass market. Rising 2 year old (R2yr) steers are generally between $2.20/kg and $2.30/kg with as much as $2.35/kg now being paid. 420kg R2yr heifers are still $2.10/kg on average however lighter ones are now fetching between $2.15/kg and $2.25/kg. Strong demand outstripped supply at Feilding last week for just the 400 cattle on offer. Steer prices were fetching a premium over paddock prices with traditional type R2yr steers 325-375kg $2.46/kg on average while 375-425kg types were $2.57/kg.

Paddock prices firm for lambs

The wet weather last week came at a bad time for Hawkes Bay farmers, as some are in the thick of lambing. But early indications are that lamb losses aren't as bad as originally thought, as it hasn't been that cold or windy. The demand for store lambs continue to exceed expectations, especially seeing the outlook for lamb is ordinary. The shortage of numbers is driving the market and there are some farmers that have decided to flag lamb and look for cattle instead. 30kg male lambs are still $2.85/kg on average in the paddock.

Strong sheep sales last week

The sheep sales last Friday were particularly strong in the North Island. A number of lines at Matawhero cracked $100/hd which left many wondering where the margins will be. Buyers should be wary of heavy lamb discounts going forward as processors seem to have a take it or leave it approach with these types at present. There were a handful of scanned in lamb ewes on offer and this market was strong with the best twinners topping $150/hd. Demand was rife at Fielding once again and prices defied the odds. A 36kg lamb averaged $2.95/kg last week. Despite being 75c/kg below the same time last year, this is 51.25% of the current schedule which suggests prices are overcooked by around 20c/kg on a percent of schedule basis compared to the same time last year.