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Demand for Spot Pigs Remains Positive

by 5m Editor
10 May 2010, at 6:00am

UK - Although there were some bleary eyes on Friday morning following the election, demand for spot pigs remained positive but traders were keeping an eye on the value of the euro, which has followed a roller coaster track in the last few days due to the turmoil in Greece and the threats of similar financial problems in neighbouring countries as well as in the United Kingdom, according to Peter Crichton in his weekly Traffic Lights commentary for 7 May 2010.

As we all know to our cost a weak euro allows imports to slip across the Channel at discounted rates and from a selfish point of view pig farmers should hope that commodity speculators are more worried about the pound than they are the euro.

Prices took their cue from the DAPP which moved up a fraction to 143.96p and as a result most spot quotes remained a firm stand-on to average 144p, but with slightly firmer demand for lighter weights which were traded 4–6p ahead of this.

Although European Union mainland pig meat prices moved up last week, this had no effect on the European cull sow market which remains under pressure mainly due to competition from non-European Union countries, rather than too many sows in the system.

Coupled with uncertainties over the value of the euro, sow quotes tended to be below 100p/kg except for large loads with the majority traded in a fairly tight 97–100p range.

The euro closed on Friday worth 86.1p compared with 86.9p seven days ago, but on Thursday things looked pretty bleak when it slipped to 84.7p.

The recent rise in weaner prices seems to have hit a plateau with the latest AHDB 30kg ex-farm average quoted at £54.52/head, although a quick glance at the calendar reveals that today’s weaner is likely to be a finished pig in mid/late August when prices normally start to wobble.

In the light of the recent election I wonder how many pig farmers will start calling their stock boars Gordon… i.e. because they are exceptionally “well hung”?