One Small Step (But in the Right Direction)

by 5m Editor
20 February 2012, at 5:51am

UK - After enduring an almost continuous pig price slide since last July, it was refreshing to know that some but not all spot buyers were at long last prepared to put their prices up a shade, writes Peter Crichton.

Hopefully this will soon filter through the shout prices and Tulip will be the first to take this bold step next Thursday to put their price up for once... we shall see.

Although the DAPP eased again to 140.2p, the spot price league table reads exactly the same as last week:

1. 138p Woodhead
2. 137p Gill
3. 135p Tulip, Vion, Cranswick

Spot bacon quotes tended to be between 130p–135p but those who went out at the lower end of the range were in some cases unable to find all the pigs they needed.

Cutters are trading at a slight premium of 4p–6p above this, but a definite feeling of the-only-way-is-up seems to be emerging in this sector.

Despite the euro closing the week a shade easier worth 83.17p cull sow prices continue to nudge ahead with the three major export buyers still looking to increase their volumes also reflecting reasonably positive European Union mainland pigmeat prices.

As a result cull sow quotes were generally within a fairly narrow 117p–122p range according to region and specification.

Although the recent spell of Arctic weather is behind us for the time being it will no doubt have had an adverse effect on born alive and weaned numbers especially on outdoor units.

The weaner market is also taking on a much more bullish tone which is yet to be reflected in the latest Agriculture and Horticulture Development Board 30kg ex-farm average of 344.51/head.

LIFFE grain futures prices are continuing to creep upwards with July wheat now quoted at 3168.50/tonne and ex-farm wheat currently traded at 3158.50/tonne which also underlines the need for better finished pig returns to keep producers from falling further into the red.