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More Shafts of Sunlight (the Trade, Not the Weather)

by 5m Editor
27 February 2010, at 8:02am

UK - According to Peter Crichton, trading today turned out to be almost exactly as predicted with the recent lift in the DAPP which now stands at 141.2p and an increase in the Tulip base price to 143p helping to inject further confidence into the market, although there are still some reports of the smaller wholesalers finding it hard to move larger volumes.

As a result most spot quotes were anywhere between a positive stand on and 1–2p upwards and any spot bacon traded at less than 140p was probably undersold.

Lighter weights continued to earn a modest premium and for those producers prepared to split sex their pigs, there can sometimes be an extra 4–6p for gilts which can be sold at slightly lighter weights than heavy bacon boars as they tend to grade on the thicker side.

Another positive has been a further weakening in the value of sterloing, no doubt caused a certain lack of confidence in the United Kingdom economy, which is hardly surprising in the light of the relationship between “prudent Gordon“ and “call me Darling“.

Since last Friday the euro has risen in value from 87.6p to 89.6p, which has effectively put 2 per cent on the cost of imports and added a similar amount to the value of our cull sows which (surprise, surprise) moved up by around 2p this week.

Most cull sow quotes had a base price of 100p with another 2–4p available with all three major export abattoirs looking to up their throughputs.

Cull sow prices also are a more encouraging sign that European Union pigmeat values are slowing increasing, although there is still a long way to go on this front.

Weaner prices continue to harden and the AHDB 30kg ex-farm average now stands at 352.42/head, which contrasts with 349/head a year ago.

More shafts of sunlight continue to emerge in the feed supply sector where the ex-farm feed wheat price has now dropped to circa 388/tonne and the time will soon be approaching for producers to make long-term commitments because there would appear to be more upside than downside in the market with wheat at this level.

All in all a very positive end to February and providing retail demand continues to increase and the pound wobbles, the picture for spring (if it ever finally arrives) is reasonably positive.