Lower Pig Prices, Higher Feed Prices

UK - A fairly quiet day as far as pig sellers are concerned with the DAPP down a touch to 146.78p and the Tulip base price also down by 1p, writes Peter Crichton in his Traffic Lights for 23 July 2010.
calendar icon 26 July 2010
clock icon 3 minute read

Fortunately pig numbers still seem to be on the tight side, but retail demand is also slow hence spot buyers were generally operating in stand-on mode.

As a result spot bacon was traded in a fairly narrow band between 140p–142p with lighter weights worth 4p–6p more than this.

If better weather returns this could stimulate alfresco demand for pig meat.

Earlier signs of a slight rally in the value of the euro unfortunately fizzled out and it closed on Friday worth 83.3p, down from 84.4p a week ago.

Despite this, cull sow prices moved up 2p after several weeks of falling quotes and producers were also heartened by the news that Lamberts' new Eye (Suffolk) abattoir will start slaughtering sows next week providing a convenient and competitive outlet especially for East Anglian producers.

The weaner market continues to suffer from rising feed prices and a lack of confidence in finished pig margins during the autumn period ahead and the latest Agriculture and Horticulture Development Board 30kg ex-farm average is 351.63/head, but with reports of some producers selling at below 350/head where space is short.

The other talking point of the last few days has been feed prices with off-the-combine quotes of over 3120/tonne for feed wheat and barley looking a much better bet at around 3105/tonne.

Forward prices are however painting a fairly expensive picture with wheat for November delivery quoted at 3135/tonne, but the market remains speculative so those producers with forward cover may now be pleased that they have got a safety net in place.

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