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Tulip Stands on with Its Shout Price

by 5m Editor
25 September 2010, at 6:26am

UK - Demand is tending to reflect the weather this Friday which can best be described as dull with a slightly cold edge and only a few sunny intervals, writes Peter Crichton.

The DAPP continues its steady downward path and now stands at 141.29p, but remains a much more attractive alternative than spot where some buyers have been suggesting prices of below 130p/kg, but the general run of offers has been 130pā€“135p and the wide range of quotes is accounted for by the difference between various specifications on offer and in many cases "less is more" and 130p for a 90kg on a 14-probe nets a better return than 134p to 78kg on a 12-probe.

The smaller fresh meat buyers have still been offering reasonable premiums with quotes in the 140ā€“145p range for gilts and lighter weights and with feed prices as high as they are, selling lighter pigs is now a realistic option for some producers.

The small shaft of sunlight was provided by Tulip which decided to stand on with its shout price which works out at 142p including level delivery bonus.

Another plus factor has been the relative strength of the euro compared with recent weeks which closed on Friday worth 85p.

This improvement in the value of the currency was not however reflected in the cull sow market where due to less competition for the larger numbers now becoming available prices were generally at stand-on levels, but shrewd sellers were still able to get circa 110p for large loads and 104p delivered in to collection centres with no need to take less than this.

Rising feed prices are continuing to haunt the pig industry not just in the United Kingdom but further a field with reports that Danish weaners have dropped by up to 33 in value over the last few weeks, a pattern being repeated in the United Kingdom.

The latest Agriculture and Horticulture Development Board 30kg ex-farm weaner average has continued to slip and now stands at 345.01/head, which includes a significant proportion of DAPP-related weaner contracts.

Like their finished pig counterparts, spot weaners are proving much harder to place with buyers not only keeping a wary eye on feed prices, but also a glance at the calendar reveals today's weaners will probably hit the finished pig market on something like Christmas Eve.

At least the latest June provisional pig census is indicating a very marginal decline in the English pig herd and producers should think long and hard before committing themselves to any headlong expansion without securing appropriate abattoir outlets that are prepared to stand behind long term pig supply contracts.