Most areas of the South Island have plenty of grass and limited stock to graze it, which has equated to store markets that fly in the face of the lamb outlook and, for the short term at least, store lamb vendors are reaping the reward.
Numbers at the main South Island sales have been moderate and the store lamb market has stuck out for all the right reasons, with prices well above where they would be if schedules were the focus. As we know, though, they are not, with grass driving the bids and when compared to paying $400-$600 for calves or $1000-$1200 for R1 cattle, the lambs look relatively cheap on the books, with most generally trading at $70-$80 for 24-34kg LW.
Needless to say, it is the lighter lambs that are the expensive shopping, with these prices being paid in the North Island for 32-37kg LW lines. How long this market will hold is anyone’s guess and, as more lambs come onto the market at onfarm sales and in the yards (who wouldn’t push lambs into the market at these prices?) in the next few weeks, expect to see some price adjustments made.
One would suggest, however, that at these levels, South Island buyers could pick up lambs in the North Island for very competitive rates compared to those being paid in their local areas, even with transport costs and the added time taken with State Highway 1 still closed between Blenheim and Kaikoura. It’s certainly food for thought, anyway, and don’t be surprised if we start to see a bit more buying power in North Island yards from the South, which will no doubt be welcomed by vendors.
suz.bremner@nzx.com
