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Prices Hotting Up

by 5m Editor
22 May 2010, at 5:05am

UK - Like the weather, demand is starting hot up, writes Peter Crichton.

Although prices for next week have moved ahead by only a copper or two, once suburban barbecues start to sizzle pigmeat (and alcohol) consumption should rise.

The DAPP continues to nudge ahead and now stands at 144.95p but is still 7p below its position twelve months ago.

Demand was helped by some spot buyers who had already made mid-week forays for pigs although contract buyers seemed to have better access to the numbers required and were less inclined to increase their base prices.

As a result spot bacon was generally traded in the 148p region with a penny or two more available from some buyers and few seem to be bothered about the upcoming spring bank holiday at the end of the month.

Lightweight pigs continue to earn modest premiums of 4-6p above bacon but the motto "weight is money" still applies.

The whole European Union pigmeat trading market remains under something of a cloud however, due to further concerns in the financial markets over the value of the euro — although at the time of preparing this report this is yet to filter through and the euro closed on Friday at 86.7p which is better than its value of 85.4p a week ago.

European cull sow prices have remained under pressure with European Union mainland pig processors complaining more about poor demand rather than oversupply.

There are hopes however that when the World Cup coincides with the European summer holiday period al fresco dining will lift demand for pig meat still further (but not in Saudi Arabia).

At least United Kingdom cull sow quotes appear to have stopped falling and there were one or two reports of the odd penny extra being available for larger loads but prices still remain low with quotes mainly between 96– 99p although some sellers were still able to haggle for prices at the upper end of this range.

The weaner market has also paused for a breath due to buyers' concerns over finished pigmeat values in the August/September period but the Agriculture and Horticulture Development Board 30kg weaner average has held firm at £54.54/head despite a further slight rise in the spot price of wheat which is now quoted at £99.80/tonne ex-farm.

P.S. Two starving Mexicans were lost in the desert and saw a tree in the distance draped with juicy bacon. Miguel said to his mate Pepe, "Look there is a bacon tree, we are saved". Miguel ran to the tree but before he got there was shot down in a hail of bullets. With his last breath he shouted, "Run Amigo, ees no bacon tree ees a ham bush!" (Boom boom.)