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Pressure on Slaughtering Space

by 5m Editor
29 August 2009, at 9:39am

UK - As expected the upcoming short week has put pressure on slaughtering space coupled with a further slip in the value of the DAPP which now stands at 152.28p, writes Peter Crichton.

As a result spot buyers did not have to search very far to get the volumes they needed and although most producers are reasonably well on top of their numbers, some pigs were inevitably rolled and it may take a couple of weeks before the backlog is eaten up.

Spot bacon quotes today tended to be in the 140p region at the heaviest end of the weight range on a 14-probe with a few pence more being offered elsewhere, but generally on a tighter spec.

Not much of a premium for lighter weights and with feed prices where they are it is still generally in producers’ interests to add as much weight as they can.

Recent improvements in the value of the euro have helped to put up the cost of imports which are still undercutting the British market to a significant extent and the euro closed worth 88p on Friday compared with 86.2p a week ago.

The only real action seen in the market today was in the cull sow sector where despite the short week ahead export abattoirs were continuing to look for increased numbers, despite relatively static cull values in Europe.

Most prices tended to be in the 116–118p region with a few coppers more for large numbers according to specification.

The weaner market continues to suffer from the effects of the slow down in clearing finished pig numbers, a delayed finish to harvest/straw carting and a slightly less than optimistic outlook for finished pig prices this autumn.

As a result weaner prices are continuing to ease with 30kg values tending to be in the £50-£54/head range according to quality.

Reports of slight rises in the value of feed wheat mainly due to currency adjustments rather than the crop being worth more money are also a slightly negative factor for weaner buyers to digest and may help to explain why weaner prices are on the drift.

Comparisons with a year ago still make very favourable reading throughout all sectors of the market as follows.

Week 4 August 2008
DAPP 136.43p
Spot bacon 135.86p
Weaner values £42.98
Wheat £111.00/t
Euro 80.70p

Week 4 August 2009
DAPP 152.28p
Spot bacon 142.00p
Weaner values £54.33
Wheat £88.00/t
Euro 86.2p