Listen: March Madness - M. bovis, lamb prices and Trump

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Lamb prices were again the star for March, ASB senior rural economist Nathan Penny said.

Prices had bucked the normal seasonal pattern with per kg prices lifting above $7.

Records suggested lamb prices were the highest ever recorded for March, he said.

In the opposite camp had been mycoplasma bovis and United States President Donald Trump.

"In an unprecedented move, MPI announced more than 22,000 animals from 22 infected properties were to be slaughtered.

"Meanwhile, the Trump administration announced increases to tariffs on selected Chinese exports to the US, prompting fears of a potential trade war.''

The dairy sector was also not far from the news, he said.

Fonterra lifted its 2017-18 milk priced to $6.55 per kg/ms but at the same time announced a half-year loss driven largely by a $405 millon writedown on its Beingmate investment.

Listen to Nathan Penny on The Country below:

The writedown might have been the last straw for Fonterra, as chief executive Theo Spierings was set to stand down by the end of the year, he said.

After the announcement, and given the late stage of the season, ASB had matched its forecast with the Fonterra payout.

Generally, global dairy prices, and in particular the prices important to New Zealand, remained firm.

"With global demand also firm, we expect the global dairy market will remain largely balanced for now and for prices to track sideways as a result''.