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Anxious Times as Premium Reaches 25p

by 5m Editor
24 April 2010, at 6:20am

UK - Demand for pigs today proved to be rather like the weather... pleasant for those prepared to sit it out, writes Peter Crichton.

The gentle improvement of the DAPP which now stands at 143.55p helped set the trend for spot buyers and very few were able to open their account at less than 143p with a copper or two more available for special jobs.

A slight easing in the value of the euro, which closed the week worth 86.9p compared with 87.6p seven days earlier, increases the threat of much cheaper European Union imports continuing to penetrate the domestic market. British bacon sellers are now enjoying a premium of something like 25p/kg compared with their European counterparts.

This is no time to gloat but to keep anxiously looking over our shoulder as even enhanced British-spec pigs still remain vulnerable to cheaper foreign substitutes.

The sow market continues to underline the wide gap between European Union mainland and British pigmeat values with 100p/kg now closer to a top bid than a base price with reports of some outlets trying to buy in the 96p–98p region, but perhaps not getting the numbers required.

The weaner shortage continues to bite and as a result prices are tending firmer with the Agriculture and Horticulture Development Board 30kg ex-farm weaner average now standing at 354.40/head and it will be interesting to see what it has reached when we all meet up at Pig Fair in just under three weeks.

Producers should however keep a wary eye on the cereals market where wheat prices have been stealthily increasing albeit at a very modest rate with ex-farm feed wheat now quoted on a spot basis at 394.60/tonne, up from 388.00/tonne in late February.

Those producers now setting up anaerobic digesters might decide if they can find a suitable use for all the hot air being produced by our politicians at present in the lead up to the General Election. Suggestions on a postcard please.