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Larger Buyers Cut Back

by 5m Editor
25 July 2009, at 6:40am

UK - Although there are no signs of pig numbers going up, unfortunately some of the larger buyers who are buying pigs on DAPP-related contracts have cut their throughput with the result that extra pigs have come onto the spot market at a time when there are fewer takers in this sector, writes Peter Crichton.

This time last year however the DAPP was at 136p, level-pegging with spot, but wheat was trading at 3117/t ex-farm.

For those with longer memories almost two years ago on 3 August 2007, foot and mouth disease escaped from Pirbright and we all know what happened next.

Because of the lack of significant spot buyers now operating, prices in this sector fell, with a fairly wide range of values according to specification, which saw 147p being paid by some and less than this (but generally on a more liberal spec) by others.

Some of the smaller fresh meat wholesalers were more inclined to hold prices at similar levels and generally the bigger the abattoir the bigger the drop.

At least the euro managed to hold on to recent gains and traded on Friday at 86.5p, which is almost exactly where it was a week ago.

Cull sow quotes have remained firm, but an even wider range of values was quoted according to who you are, where you are and how many you had.

Smaller lots tended to trade in 109–114p range, but larger loads could command fairly useful premiums of several pence above this.

Recent falls in spot prices seem to have filtered through to weaner buyers who were generally operating at slightly more cautious levels than recently and the AHDB 30kg ex-farm average has actually slipped a touch to 356.68/head, but with feed prices where they are and a fairly good outlook for finished pig prices in the autumn, these should pay money to weaner producers and finishers alike.

On the subject of weaners the controversy continues over the threats posed by imports and news has yet to emerge of any cowboy outfits prepared to jeopardise the health of the whole British herd by shopping abroad.