A Margin for Everyone

UK - A firm demand for all categories of pigs, although no fireworks, with prices at sustainable levels for producers and hopefully also allowing enough of a margin for processors to keep in the black as well, according to Peter Crichton.
calendar icon 21 June 2010
clock icon 3 minute read

The DAPP continues to nudge ahead and put on another 0.66p to stand at 146.82p.

A year ago spot prices and the DAPP peaked in late June, but then went into a fairly steady decline right through to the autumn.

Signs are emerging that this year although we have not hit the heights seen in 2009 supply and demand are in better balance, which should (hopefully) mean we avoid last year's roller coaster ride and for those of you familiar with these devices, they always end up lower than where they start!

Spot bacon was traded in a fairly tight band of 150–152p/kg with lighter cutter weights earning a modest 4–6p above this.

Premiums are being paid for slaughter gilts by some smaller outlets and this is an area well worth looking at, especially as gilts tend to probe thicker than boars so can be taken out of the system at slightly lighter weights, but still return higher than average prices.

The euro has moved very little this week and traded on Friday worth 83.6p compared with 83p a week ago.

While the European cull market is reported is reported to be over supplied and under pressure, because of the relative shortage of United Kingdom sow numbers cull prices held at generally similar levels, although there were some regional variations with sows worth more in the south-east than they were in the north and most traders were quoting bids of 96–100p according to specification.

The weaner market has also remained firm throughout with the latest Agriculture and Horticulture Development Board 30kg ex-farm average quoted at £54.24p/head, but prices are likely to rise as the autumn approaches, especially if the cost of feed continues to drift lower. The latest feed wheat quote of £96.50/tonne compares with £100/tonne in early May.

For those of you out there looking to invest in some nice green outdoor pig equipment, a visit to my sale near Ipswich tomorrow could be worthwhile and also take everyone's minds off the World Cup!

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