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Prices Continue to Rise

by 5m Editor
1 June 2010, at 3:48am

UK - The outlook for sellers remains positive and this was underlined by a further rise in the DAPP, which improved again this week and now stands at 145.46p, writes Peter Crichton in his Traffic Lights commentary for Friday, 28 May.

The Tulip base price also moved up by a penny to 147p and the spot market reflected this with a positive stand-on feel to the trade, despite the euro remaining under pressure and closing on Friday worth 85.4p.

Despite the short week ahead several of the major players will be operating on Bank Holiday Monday and hence the so called short week had very little effect, which is often not the case.

Spot bacon was generally traded at 148p to 90kg on a 14 probe, although some factories operating on a tighter spec were a copper or two ahead of this and were effectively paying more for less.

Signs of slightly firmer demand in the fresh meat sector were evident with some of the smaller wholesalers also looking for larger numbers, perhaps anticipating barbecue demand over the holiday period and in the run up to the World Cup as many of the male population of the world stumble around spilling beer and chomping away on barbecued pork.

At long last signs are also emerging of slightly firmer prices for cull sows, but only by a copper or two and prices are now starting to nudge through the 100p/kg barrier, but they still have a long way to go to catch up with values 12 months ago.

The three major United Kingdom cull sow export abattoirs generally moved their prices up between 1p–2p/kg, but once the Bank Holiday week is over we could see a further demand for cull sows especially if the Germans (don't mention the War) get into the final of the World Cup.

Weaner prices are still holding with the AHDB 30kg ex-farm average quoted at £54.53/head, but now that feed wheat prices have risen to just over £102/tonne ex-farm some buyers are operating on a more cautious basis because of their concerns over rising feed prices and lack of any clear ideas emerging over finished pig values in the late summer/early autumn.

Perhaps we should encourage a United Kingdom futures market for pigs? But I expect this will mean redesigning movement licenses and FCI forms!