Prices Continue to Nudge Ahead22 April 2013
UK - Prices continue to edge ahead, but not at the rate that many sellers had been hoping for, or need as far as their bank overdrafts are concerned, writes Peter Crichton.
DAPP moved up a further 0.36p and now stands at 159.19p and Tulip moved its shout price up a penny with the result that all of the other weekly price abattoirs moved up by the same amount with the mysterious exception of Cranswick which disappointed the market by standing-on at 159p and the league table now stands as follows:
Spot buyers were looking for pigs but remained very price conscious and it was difficult to persuade any to go up by more than a penny with the result that most spot bacon was traded in the 162p–163p/kg range.
A return to better weather might help demand in the high street and with better weather forecast for this weekend hopefully orders will have improved in the days ahead.
Meat traders are commenting however that there is still plenty of foreign product available at competitive prices and that parts of the pig including shoulders are still relatively hard to sell.
In the currency market the euro ended the week worth slightly more than seven days earlier trading on Friday at 85.69p, but this modest improvement in value had little effect on cull sow prices which remained at stand-on levels with most culls trading in the 107p–109p/kg range with an extra copper available in some areas for large loads according to spec.
The cull sow market has always provided as ready barometer as far as European mainland pigmeat prices are concerned and this is still indicating indifferent prices for the time of year and it is worth remembering that 12 months ago cull sows were trading in the 126p/kg range, almost 20p/kg above their current value.
Another reason why cull prices are at such relatively low levels may be the fact that according to recent reports much larger numbers are being killed in Germany and although it is difficult to say if this is due to the January 2013 stalls ban, any reduction in pig output across the European mainland might be a sign of better times ahead for hard pressed British pig producers.
Weaner prices continue to edge ahead, but with no signs of any significant falls in feed prices finishers are still very concerned over their margins, which has tended to put a lid on any further significant price rises with the latest AHDB 30kg ex-farm weaner average quoted at £48.97/head, but significant premiums available for Freedom Food pigs reflecting a significant improvement demand at the welfare friendly end of the market.
ThePigSite News Desk