A Return to Summer Weather Would Help25 June 2012
UK - Although Tulip went up by a welcome penny followed by Gill, all of the other major players decided to stand-on reflecting the DAPP which has also remained virtually static at 149.37p, writes Peter Crichton.
The latest league table is as follows: 152p Woodhead, 151p Gill, 150p Tulip, 148p Cranswick and Vion.
Spot demand remained firm but not spectacular with supply and demand almost in balance, but a return to summer weather would work wonders for demand.
Spot bacon was mainly traded in the 150p–152p range with lighter weights worth up to 160p
The indifferent value of the euro which traded on Friday worth 80.50p as well as earlier falls in the value of European mainland pigmeat prices has done nothing to stimulate demand in the cull sow sector, where bids were generally in the 116p–118p range and it was hard to get much more than this except for large loads.
Weaner prices continue to fall due to rising feed costs with the latest AHDB 30kg ex-farm weaner average quoted at £43.07/head, but due to better production there are reportedly more weaners in the pipeline who will be looking for homes in the weeks ahead.
Finishers are continuing to scratch their heads over soaring feed costs with July wheat quoted on the LIFFE futures market at £183/tonne and ex-farm quotes on a spot basis are £172/tonne. Soya prices are also continuing to rise and as a result compound feed costs will remain eye wateringly dear.
This largely explains why weaner prices have fallen despite relatively firm finished pig values and according to the latest calculations finished pig prices will need to exceed 150p to break even.
Perhaps a change in the weather and the Olympics will come to our rescue?
ThePigSite News Desk