Shortage of Pigs Starts to Bite

by 5m Editor
11 June 2012, at 6:46am

UK - Despite the monsoon weather condition,s demand for pigs has finally started to improve mainly due to a shortage of number in the system.

As no DAPP was announced because of the Jubilee holiday, last week's figure of 149.23p remains. Tulip and Gill decided to stand-on but fortunately Cranswick, Vion and Woodhead went up by a penny and the league table now reads as follows:

151p Woodhead.
148p Gill, Tulip.
147p Cranswick, Vion.

For the first time for months spot buyers were seriously short of numbers and 151p proved to be an accurate base price. Some of those who were short of pigs had to throw several extra coppers into the mix to get what they needed despite retail demand remaining fairly static. As one spot buyer remarked, "can't buy them, can't sell them!"

The euro has ended another eventful week in the financial markets worth almost exactly where it started seven days ago trading on Friday worth 80.78p.

As a result cull sow quotes have remained firm with 120p providing a benchmark and small premiums above this for those that were prepared to haggle.

The weaner market still remains the hardest sector for sellers due to a lack of finishing space coupled with high feed costs.

The AHDB 30kg weaner average remains at 344.07 and it's hard to get much more than this for spot weaners. There are no real signs of a change on the horizon in what currently remains a buyers' market.

Feed prices are also greatly adding to finishers' costs and a bacon pig can eat up to 368 worth of food from 7-110kg hence weaner prices remain under pressure.

Ex-farm feed wheat remains expensive at 3167/tonne and July wheat is trading of the LIFFE market and 3171.50/tonne.

A return to better weather would work wonders for the industry as a whole but looking at the seven-day weather forecast there are no real signs of this are starting to emerge.