DAPP Takes Another Downward Step

by 5m Editor
19 September 2011, at 8:13am

UK - Although the DAPP took another downward step this week, slipping from 147.15p to 145.99p, for the third week running shout prices have remained at similar stand-on levels and the placings remain unaltered, writes Peter Crichton in his latest Traffic Lights commentary.

145p Woodhead 143p Tulip
142p Cranswick
141p Vion
141p Gill

Although some signs are emerging of fewer available spot bacon pigs leading to a copper or two more being available from some outlets, prices generally held at positive stand-on levels with bacon trading in the 140p–145p range according to specification.

Lighter pigs are continuing to earn modest premiums of 5p–7p above this, but a fairly wide gap remains between Freedom Food and non-Freedom Food pigs throughout the market, which there needs to be, bearing in mind the much higher costs associated with Freedom Food production especially with straw at sky-high prices.

The euro fortunately recovered a little of its composure as the week went by closing on Friday worth 87.30p having dropped as low as 86.2p mid week due to further worries over the poor financial condition of some member countries' economies, especially those in the PIGS category (Portugal, Italy, Greece, Spain).

Cull sow prices remain firm helped by the opening of the Six Hills abattoir near Melton Mowbray, which means there are now four major players looking for sows and volumes, which is double the number there were a year ago.

As a result cull sow quotes tended to be in the 107p–111p range +/- according to specification.

Once again weaner sellers had to work harder than anyone else today with very little spare finishing space available and this sector remains a buyers' market in every sense of the word.

The latest Agriculture and Horticulture Development Board 30kg ex-farm weaner average is a disappointing 340.80/head which includes a significant proportion of more expensive contract weaners with spot quotes remaining at a significant discount.

Earlier in the week signs were emerging of easier cereal prices, although on Friday LIFFE wheat futures gained 32- 33/tonne with November closing at 3163.50/tonne, but May 2012 is still touching 3170/tonne.

Spot wheat was traded this week ex-farm basis at 3155/tonne, but with pig prices where they are that is still probably 330/tonne too expensive and nervous bank managers are still to be seen on regular visits to some of their cash-strapped pig farmer customers.