Pigs May be Rolled Next Week

UK - Although the DAPP has held up reasonably well at 146.93p, spot sellers found the going slightly tougher with fewer takers in this sector which continues to be affected by cheaper imports and indifferent retail demand, writes Peter Crichton.
calendar icon 17 July 2010
clock icon 3 minute read

As a result spot quotes were in a fairly wide range between 139–144p according to region and specification and some reports of pigs being rolled into next week, but fortunately not too many as British numbers remain fairly tight.

Lighter pigs continue to earn premiums of 4 -6p above bacon with spot cutters traded between 145–150p.

One heartening feature has been the recent improvement in the value of the euro which closed on Friday worth 84.4p compared with 83.3p a week ago.

This helped to put something of a bottom into cull sow prices which had been generally easing over the previous two weeks with quotes generally falling into the 90–94p range depending on load size, and small premiums still available for those sellers with larger numbers and who are prepared to haggle.

Weaner prices continue to reflect the slightly unsettled outlook for finished pigs in the weeks ahead and recent sharp rises in feed wheat quotes, with the Agriculture and Horticulture Development Board 30kg ex-farm average now standing at 352.21/head, but some quotes of 32– 33 below this where sellers needed to make space during harvest.

The recent rise in feed wheat prices remains the talking point of the week which in the last few days have seen feed quotes increase by up to 315/tonne.

There are some signs however that speculators are driving the market up rather than simply an increase in demand or reduced supplies, but those producers who bought ahead a few months ago (as previously advised) should keep their feed contracts locked in a safe place.

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