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Shouts Up Two Pence But Spot Still Ahead

17 September 2012, at 8:10am

UK - DAPP rose by 1.38p to 151.56p/kg on the back of higher pig prices two weeks ago and as a result shout prices also moved ahead with Tulip up 2p following last week's disappointing stand-on and the others following suit, writes Peter Crichton for The National Hog Farmer.

The league table now reads as follows.

  • 157p Woodhead.
  • 155p Gill.
  • 153pTulip.
  • 151p Cranswick and Vion

Spot demand remains firm reflecting further supply shortages with bacon traded between 157p and 158p but some buyers may still be on the hunt for more pigs to fill a few empty slots at the end of the week with 160p on the horizon.

But it is still hard to understand how wholesale and imported pigmeat values have risen by a far greater percentage than shout and spot prices with strong suspicions that producers are losing out as far as better margins are concerned. Retailers and processors need to be reminded that pig production at current levels is unsustainable so it's a case of pay-up or pack-up for many.

Despite larger numbers of cull sows being available with herds clearing out due to the financial situation, cull sow prices have improved on recent values helped by a firmer euro up from 79.86p to touch 81p with export abattoirs generally quoting between 115p-117p/kg according to spec.

The weaner market remains under extreme pressure with the latest AHDB 30kg ex-farm weaner average remaining static at 338.98p/head and finishers still showing little enthusiasm to pay more than this in the light of high feed costs although a sustained rally in finished pig prices would help to lift this sector out of the doldrums.

With ex-farm feed wheat currently trading at 3193/t and LIFFE futures market November wheat quoted at 3207/tonne and May 2013 at 3209, as well as a bullish soya market, pigmeat prices will need to add another 15p or so within the next few weeks to put the industry back in profit.