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It Was a Buyer's Market Today

by 5m Editor
12 July 2010, at 12:44am

UK - A quiet day's trading with most contract buyers having enough pigs in the system to meet what was described as patchy retail sales and although the recent heatwave has boosted demand for parts of the pig, the loin remains hard to sell, writes Peter Crichton.

As a result, the spot sector was more of a buyers' market and most of those out shopping were able to agree deals in the 142–144p range, but some warmer-hearted types were prepared to pay a penny or two more than this but often on a tighter spec.

The DAPP has held almost unchanged at 147.27p but could ease back in the weeks ahead, although one bit of slightly more positive news is that pig numbers appear to be tight with the hot weather slowing down growth rates.

The euro closed the week marginally firmer worth 83.6p, up from 82.9p only seven days ago.

Unfortunately, this did nothing to lift the gloom in the cull sow sector where prices have generally eased by a further 2p with quotes of between 92p and 96p on a collected/delivered basis. Following the suspension of slaughtering at A. and G. Barber, an extra 1,000 sows were looking for space with the two remaining export outlets in Britain, who are selling to a lack-lustre European mainland sow market.

A return to a more competitive situation in this sector would be welcomed, and a few more baskets to put all our eggs in.

Weaner prices have also eased reflecting a combination of rising feed prices caused by the drought and indifferent finished pig prices forecast over the next 10/12 week period.

The latest Agriculture and Horticulture Development Board 30kg ex-farm weaner average has dropped again to £53.23 per head, although this still probably represents a better return for the breeder than the finisher.