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Market Stays Firm Despite Weaker Euro

by 5m Editor
12 June 2010, at 10:22am

UK - Some fairly positive signals were sent out in the marketplace by the further improvement in the value of the DAPP which now stands at 146.16p, although the Tulip base price remained at a 148p stand-on, writes Peter Crichton.

United Kingdom pig numbers are reported to be on the tight side and as a result everything was sold despite one of the major players cutting their kill by 1,000 head for next week.

Although the weather has remained on the chilly side, there is a better forecast for the weekend and early next week which might help to stimulate demand on the barbecue front and although recent falls in the value of the euro are causing some concern, pig trading finished on a generally firm note with very few cases of spot bacon being traded for less than 150p/kg.

Several retailers are reporting to be living on something of a hand to mouth basis which may mean that if demand picks up new orders will come rolling in leading to further price rises in the weeks ahead.

Lighter cutter weight pigs continue to attract modest premiums of 4–6p/kg, although those producers who have space cannot beat taking everything to the heaviest possible weight and selling on a bacon contract and some of the more generous specifications out there to 90kg on a 14-probe mean that pigs at the top end of the weight range are now capable of realising close to £130/head.

The euro finished the day at 83p, which is a far cry from last autumn when it hit 92p in value, but at least Friday's close is slightly ahead of seven days ago. Perhaps we have hit something of a plateau?

European Union mainland cull sow values have remained at similar levels, although reports are still being received of indifferent demand and very cheap imports from Brazil, America and Canada undercutting the market which may help to explain why British cull sows are now generally trading in the 96–98p range compared with 110p 12 months ago, which is equivalent to a loss of £15/sow.

The general trend is for sow values to remain at similar levels in the summer but rise in the autumn, but even at what appear to be low prices a return of £150/head from a cull sow is not to be sneezed at.

Weaner prices continues to reflect long term confidence in the market although the Agriculture and Horticulture Development Board 30kg ex-farm average has slipped a shade to £54.27/head, but those sellers with large numbers of tail docked and PCV2 vaccinated pigs are still able to command a significant premium in an undersupplied market.

Those of you who are looking for outdoor pig equipment, the following sale which takes place next Saturday the 19 June may be of interest www.petercrichton.co.uk/images/PDF/catwebsite.