The price for US topside, rump and chuck increased by 2%, 1% and 2.2% respectively week-on-week while the price for striploin and brisket declined by 3.8% and 3.3% respectively week-on-week. Increased domestic demand provided support for prices. The increasing grains prices is still a concern as increased feed prices will have a negative impact on the US livestock industry. Positive price movements were experienced in the New Zealand beef market with steer prices up by 0.6% and cow prices up by 2.6% week-on-week. Increased prices is due to continued strong export demand to China.
Beef: The US beef market was mixed this week with both positive and negative shifts in market prices. Increased domestic demand provided
support for prices. The increasing grains prices is still a concern as increased feed prices will have a negative impact on the US livestock
industry. In the domestic beef market, the price for class A and C remained relatively stable this week with the weaner calf price increasing by
1.8% this week. The high maize prices continue to be a concern for livestock farmers.
Mutton: The New Zealand sheep meat market traded positively this week with a 1.6% increase in lamb price and a 1% increase in ewe
prices week-on-week. Latest slaughter statistics show that this season’s kills to date of 14.7 million head of lamb is a record low level for this
time of year. The domestic sheep market is not experiencing the same increasing trend as the international market. The price of feeder lambs
increased by 0.9% week-on-week. Increased domestic grains prices is having a negative impact on the domestic lamb and mutton market.
Pork: The US pork market mainly traded negatively this week. There has been no recent updates regarding African Swine Fever or a
resolution to the US/China trade negotiations. Increased grains prices is creating a black cloud over the livestock market as higher feed prices
are looming which will have a negative influence on livestock prices. The domestic pork market is doing well with current prices of porkers and
baconers between 7% and 18% higher compared to prices a year ago.
Poultry: The US poultry market moved negatively this week as increased grains prices added pressure to the market due to rising feed costs.
Increased grains prices is being felt in most countries around the world in response to the US prices - Brazil specifically, who were enjoying
increased poultry exports to China are now experiencing pressurised margins as their feed costs increase. The domestic poultry market also
experienced negative price movements this week as increased domestic grains prices resulted in rising feed costs, the market is further under
pressure due to mid-month demand being at lower levels.
Hides: The calculated average hide price declined by 0.4% compared to last week. The current hide price is 77.9% lower compared to prices
a year ago. The hide market continues to remain under pressure but prices are holding relatively steady.
In the domestic beef market, the price for class A and C remained relatively stable this week with a very slight decline in price of 0.2% for class A and 0.01% for class C week-on-week. The weaner calf price increased by 1.8% this week. Although the domestic maize prices are currently at a high level, prices do appear to be stabilizing. The high maize prices continue to be a concern for livestock farmers though as increased feed costs will negatively impact livestock markets.
In the international markets – the New Zealand beef market is expected to continue to experience strong export demand which will support prices although supply is expected to decline to winter low levels while the US beef market is expected to continue experiencing high levels of volatility. The US market is hopeful that the 4th of July will bring a spike in domestic demand. Continued wet weather is adding pressure to the market as increased US feed costs will impact their livestock markets. In the local market, beef prices are expected to remain relatively stable in the next three months. Class C prices should increase due to increased seasonal domestic demand due to winter that will provide support for prices.
The New Zealand sheep meat market traded positively this week with a 1.6% increase in lamb price and a 1% increase in ewe prices week-on-week. Latest slaughter statistics show that this season’s kills to date of 14.7 million head of lamb is a record low level for this time of year. This slaughter level is 5.5% behind last year. There may still be a large number of lambs coming to market this season as the promise of good winter premiums result in producers holding on to lambs in order to maximize margins later in the season. The price for mutton shoulders and ribs increased by 0.8% and 1.1% respectively week-on-week with the price of mutton shoulders up by 7% compared to a year ago.
The domestic sheep market is not experiencing the same increasing trend as the international market. The price of class A declined by 8% this week causing prices to be 12.5% lower compared to a year ago while the price for class C declined by only 0.04% week-on-week. Seasonal demand for class A is relatively lower than the demand for class C at this time of year. The price of feeder lambs increased by 0.9% week-on-week. Increased domestic grains prices is having a negative impact on the domestic lamb and mutton market. While the price of dorper skins remained the same as last week, the price for merino skins dropped by 6.5% week-on-week to R36.08/skin.
The New Zealand market for lamb and mutton is expected to continue experiencing strong export demand which will continue to provide support for prices. In the domestic market, prices are expected to be under pressure in the short term due to increased grains prices. Increased seasonal demand for class C meat is expected to provide support for prices in the next three months with class A prices also expected to experience an improvement. The price of feeder lambs is expected to continue along an increasing trend.
The US pork market mainly traded negatively this week. The US pork carcass and loin price declined by 0.5% and the ham price declined by 1.3% while the rib price increased by 0.7% week-on-week. Despite the ham price declining compared to last week, prices are 29.9% higher compared to a year ago. There has been no recent updates regarding African Swine Fever or a resolution to the US/China trade negotiations. Improved weather conditions in the US may result in an increase in domestic demand which would provide support for prices however forecasts call for continued rainfall. Increased grains prices is creating a black cloud over the livestock market as higher feed prices are looming which will have a negative influence on livestock prices.
The domestic pork market is doing well with current prices of porkers and baconers between 7% and 18% higher compared to prices a year ago. Weekon- week the porker price increase by 1.7% while the baconer price increased by 3.3%. These price increases are due to increased seasonal domestic demand for pork. The number of animals slaughtered is 7.7% lower than last week but is 41.3% higher compared to the number of animals slaughtered a year ago.
The US pork market is expected to continue to experience high levels of volatility. Increased grains prices causing rising feed costs will create added pressure on an already pressurised market as uncertainty continues regarding the US/China trade deal and the impact of ASF. The domestic pork market are expected to continue experiencing higher prices in the next three months as increased seasonal domestic demand provides support for prices.
The US poultry market moved negatively this week as increased grains prices added pressure to the market due to rising feed costs. The price of whole birds declined by 2.5% while chicken breasts declined by 1% week-on-week. Fresh and frozen MDM prices declined week on week by 0.8% and 1.1% respectively. US chicken leg quarters experienced the only week-on-week price increase for the week with an increase of 1.8% while the price EU chicken leg quarters declined by 0.5%. Increased grains prices is being felt in most countries around the world in response to the US prices - Brazil specifically, who were enjoying increased poultry exports to China are now experiencing pressurised margins as their feed costs increase.
The domestic poultry market also experienced negative price movements this week as increased domestic grains prices resulted in rising feed costs, the market is further under pressure due to mid-month demand being at lower levels. The price of fresh whole birds declined by 0.1%, frozen whole birds declined by 0.7% and Individually Quick Frozen prices declined by 0.3% week-on-week.
The international poultry market is likely to experience volatility in the short term as increased grains prices result in rising feed costs which places pressure on the poultry industry which is a feed intensive sector. Increased demand is expected in the medium term due to the protein shortage in China. The local poultry industry is expecting increased domestic demand in the next two weeks due to month end which should provide support for prices. In the next three months the domestic poultry prices are expected to decline until June/July before increasing into August.
The calculated average hide price declined by 0.4% compared to last week. The RMAA price for feedlot hides declined by 2.1% while the
RMAA price for field hides increased by 0.6% week-on-week. The current hide price is 77.9% lower compared to prices a year ago. The hide market continues to remain under pressure but prices are holding relatively steady despite the pressure which is a silver lining for producers.
