Wednesday, 29 May 2013 09:08

LAMB | North Island lamb prices to crack $5/kg

Farmgate prices for lamb have been heading higher in both islands over the last two weeks. Prices in the North Island are poised to break through the $5/kg mark.

South Island prices are about 20c/kg lower with the lamb kill there in better shape relatively. But the South Island kill has been dropping quickly and overall the weekly NZ lamb kill is running around 20% lower than last year and 5-year average levels for this time. More rain in most regions, improvements in overseas market prices, the lower dollar and winter supply contract prices are all providing more confidence and certainty in the lamb market. This is definitely evident in store lamb pricing in the North Island in particular where 32kg male lambs prices have lifted by at least 20c/kg in the last 4 weeks. Another winter contract has been released in the North Island recently with prices ranging from $5.25/kg in early July to $5.85/kg in late Oct.

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Positive rumblings in overseas lamb markets

There has been more optimism shown by NZ exporters in recent weeks as a lack of lamb drives prices up in many of our main overseas markets. UK CKT leg prices saw a sizeable lift recently. UK buyers are aware of NZ's supply situation and have finally upped their game as their own domestic product is mainly going to the EU. Stocks are gradually being whittled down in the EU and most are expecting positive price movements in the next 4-6weeks in this market. And there are the same expectations for the US market although at present cheap Aussie product is taking precedence.

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Market Briefs by iFarm.co.nz

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