Pork and Cereal Prices Up Last Week

by 5m Editor
31 October 2011, at 9:22am

Tulip set the trend by moving its shout price up by 2p to 146p for the second week in succession and both Woodhead and Vion added a similar amount while Cranswick went +1p but in some cases operates on a higher weight range and easier grading spec, writes Peter Crichton in his Traffic Lights commentary on Friday (28 October).

The league tables now reads:

  • 1st: Woodhead 148p (+2p)
  • 2nd: Gills 147p (+2p)
  • 3rd: Tulip 146p (+2p)
  • Equal 4th: Cranswick 145p (+1p) and Vion 145p (+2p)

The spot market, however, tended to reflect the DAPP which has remained virtually static at 145.07p and although earlier on in the week signs were emerging that spot buyers would drive prices up, by the time last Friday dawned, it was more a case of stand-on rather than any extra money so 150p per kg became more of a ceiling than a floor with spot bacon mainly quoted in the 147p to 149p range.

Smaller fresh meat wholesalers are still reporting quiet times on the high street with the result that lighter cutter weight pigs only remained in modest demand in the 150p to 156p range.

Another factor in the pig price equation are reports of the difficulties faced by exporters in actually getting fifth quarter exports to China as far as paperwork and veterinary small print is concerned, which has taken some of the froth off this market.

Cull sow prices, however, continue to reflect a strong euro which traded on Friday at 87.81p now that some of the euro-zone cash crisis has been resolved by another zillion euro loan as well as relatively buoyant European Union pig meat values.

With plenty of competition for sows prices are continuing to move ahead and this week rose by another 2p with quotes in the 112p to 116p range, according to load size and specification.

Weaner values remain low in relation to finished pig prices but some slight signs of a recovery are emerging with the AHDB 30-kg average rising to £40.89 and more buyers looking for 7-kg pigs which may face a stronger finished pig market next spring.

On a more cautious note, however, cereal prices are starting to nudge ahead after being in general decline since the spring with ex-farm wheat quoted at £144.5 per tonne compared with £155 a year ago although at that time the DAPP was only 137p so the pig pendulum seems to be swinging very slightly in the producers' favour.

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