European Prices Weaken05 November 2012
UK - Weakening European prices have contrived to put a lid on the earlier United Kingdom pig price rally and although the DAPP moved up another 0.8p to 158.79p, Tulip and the other four major abattoirs left their contract prices unchanged, writes Peter Crichton.
The prices are as follows:
- 163p Woodhead
- 160p Gill
- 159p Tulip,Vion
- 158p Cranswick
Most spot buyers however pulled their prices back due to indifferent retail demand with some orders being cut and they dropped their bids back by an average of 2p, although one or two were still prepared to stand-on at last week's levels with spot bacon mainly traded in the 158p–162p region and a copper or two more available in places.
On the positive side however no pigs were rolled or unsold with large numbers being booked in for next week, which is a better sign in the run up to Christmas.
A slight weakening in the value of the euro which closed on Friday worth 80.11p compared with 80.40p seven days earlier has also done nothing to help on the import/export front, although thankfully sow quotes stood-on with most traded in the 115p–117p range, but still reports of some fairly large numbers coming through the system as producers continue to try and keep on top of soaring feed costs and battered bank accounts.
Weaner prices continue their slow recovery with the latest AHDB 30kg ex-farm weaner average now standing at £42.44p/head, but 7kg pigs probably representing better value to the buyer as these will come onto the market next February/March at a time when all the forecasters are pointing to a significant reduction in the availability of pigmeat across the whole of Europe, which should help to stimulate the market at a time when demand normally improves.
In the meantime however finishers are advised to be like Lester Piggott and keep on top of their pigs and it would be good if a total clearance could be effected prior to the Christmas shut down rather than facing the rollover situation that often occurs at the end of the year.
With feed prices continuing to rise and ex-farm wheat now quoted at £200/tonne and January 2013 wheat traded on the LIFFE market at £214/tonne, selling a lighter pig to eek out feedstocks is well worth consideration.
ThePigSite News Desk