Tight Supplies Fuel Rise in Shouts

by 5m Editor
18 June 2012, at 8:33am

UK - Sellers had a slightly more positive day than a week ago especially in the contract sector where thanks to Tulip's 1p rise in its base price all the others followed suit, with the exception of Gill who were feeling generous and decided to double this by adding 2p, writes Peter Crichton.

The latest shout place league table now reads as follows:

152p Woodhead
150p Gill
149p Tulip
148p Cranswick and Vion

The DAPP has also continued to make slight upward progress and now stands at 149.45p which is its highest level this year, but is still below its value 12 months ago of 150.80p.

On the subject of the DAPP producers will be universally pleased to hear that following intensive negotiations with BPEX agreement has been reached for Tulip to submit price data as well as three other spot abattoirs effectively retaining the DAPP as a reference price and an alternative to the unpopular shout price system and providing a weekly sample of around 100,000 pigs.

Although spot buyers also proved to be slightly keener on pigs today, this was more due to a shortage of availability than better retail demand which remains haunted by the unseasonal weather, but spot bacon was generally traded in the 150p–152p range according to specification and lighter cutters were traded at 4p–6p above this.

The euro has had a relatively quiet week trading on Friday worth 81.77p which is exactly where it was a week ago, but in line with European mainland pigmeat prices which have fallen sharply, sow exporters were also bidding at lower levels knocking anywhere between 1p–3p off last week's prices.

As a result most cull sows were traded at or close in the 116p–120p range on a delivered basis.

Weaner prices remain under pressure with the latest AHDB 30kg ex-farm weaner average of 343.15/head down again on the week, which is 32/head less on the year and disappointing for weaner sellers who are facing something of a buyers' market due to a lack of available finishing space in the system.

For those finishers with understanding bank managers (if there is such a thing) or money to spend, an investment in some long-term pig finishing accommodation could pay dividends in the future, but the short-term nature of our industry as a whole often precludes major capital investments at this level.

Although feed wheat is currently trading at 3168/tonne, which is 312/t cheaper than it was a year ago, soya remains eye-wateringly expensive and as a result compound feed prices are if anything causing even more pain to finishers' bank balances, which is another reason why weaner values have been under the cosh.