Bank Holiday Blues

UK - Soaring temperatures have an element of good news/bad news as far as the pig industry is concerned and on the positive side the upcoming Royal Wedding weekend should stimulate barbecue demand, but the negative is that near drought conditions as early as this throughout much of Western Europe have severe implications as far as the cost of feed is concerned, writes Peter Crichton.
calendar icon 26 April 2011
clock icon 3 minute read

The DAPP put on almost 2p this week to stand at 140.86p and set the tone for weekly shout prices with Tulip putting on 2p to 143p, Cranswick and Vion at a more modest 1p to 142p and Woodhead still ahead, but on a slightly tighter spec at 145p.

Spot bacon prices were however spread over a much wider range. Although with falling weights and numbers there is evidence of a black hole opening up in the pig supply chain which will hit the spot market first, because of the short weeks ahead abattoirs are under less pressure for now to find the numbers they need.

As a result spot bacon quotes were heard anywhere between a wide range from 145–153p according to region and specification.

Compared with lamb, pork is almost a BOGOF and unless prices improve, this is what several more producers will be doing.

The euro has ended the week a shade easier and although manufacturing pigmeat prices in Europe are continuing to rise, export abattoirs (yes there are more than two now) were generally offering between 106p–110p, but as with finishers, because of the short working days ahead were not looking for such large numbers, but that should change after the Bank Holidays are (finally) behind us.

The weaner market continues to be affected by rising feed prices with the latest AHDB 30kg ex-farm average almost static at 343.56/head and very few signs of finishers prepared to dig deeper until they have a clearer idea of what their finisher rations are likely to cost.

Forward quotes on the LIFFE wheat futures market eased back a shade on Thursday after rising for most of the week with May and July futures prices quoted at 3210/tonne and harvest ex-farm quotes in the 3172- 3176/tonne region.

All in all although pig producers need significantly more than the current prices on offer and a restoration of the British premium which has completely disappeared, at least shout prices headed by Tulip are moving in the right direction and half a loaf is better than no bread.

© 2000 - 2023 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.