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Some Spot Buyers Went into Reverse

by 5m Editor
27 June 2009, at 8:06am

UK - The market tended to move in two directions at once today with the DAPP continuing to improve and now standing at 154.33p, whereas some spot buyers went into reverse and others stood on, writes Peter Crichton.

With DAPP-plus-4p contract prices now worth over 158p, pigs were well supplied in this sector which meant some of the larger operators did not need to venture into the spot market to top up supplies.

Spot buyers were to some extent in retreat, complaining that foreign imports are still undercutting the home market helped by a stronger pound which has pulled the value of the euro back to 85.2p compared with 93p at the end of March.

Any further falls in the value of the euro would do nothing but harm as far as the pig industry is concerned, although some arable farmers might disagree with this with ex-farm feed wheat prices below 3100/tonne in some regions compared with 3145/tonne a year ago.

Spot bacon quotes fell within a fairly wide range for next week with some of the harder hearted buyers offering 150p, but premiums of 4–6p above this in places although often on a tighter spec, so in net terms there is probably little to choose between the highest and the lowest.

The warmer weather should help to stimulate barbecue demand, although sharply falling lamb prices are proving stiff competition on the fresh meat counters.

One positive point to emerge from Europe is that cull sow prices appear to be on an upward track and nudged ahead again by a couple of pence with most quotes now in the 110–112p region according to specification and load size.

Weaners remain hard to value with supplies well short of demand and as a result the AHDB 30kg ex-farm quote continues to move ahead and now stands at 357.65/head, but the 360 weaner has become a reality in some areas at the better end of the market.

And finally, many in the industry will be sorry to hear that Daniel Day is leaving Vion next week.

Daniel is well known as a fair-minded buyer who all through the dark days of slumping pig prices understood that farmers deserve fair prices if the food industry as a whole really wants a sustainable supply of quality British pigmeat.

We all hope that Daniel will soon find another post within the industry where he will be an asset and he can continue to be involved in an area where he has so much flair.