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Tulip Stands-On, Other Shouts Drop

14 January 2013

UK - A difficult day for sellers. Although the DAPP eased only 0.48p to 160.39p, spot prices dropped again by a further 2p–3p/kg and most but not all of the shout prices also went south.

Although Tulip announced on Thursday evening that its weekly price would be down by 2p to 157p, by Friday morning it had relented and thankfully reverted to stand-on at 159p.

However this slightly wrong footed the other four major shout price buyers, all of whom cut their prices back by between 1p–2p/kg with the result that the amended league table now reads as follows:

162p Woodhead
159p Tulip
158p Gill and Vion
157p Cranswick.

There were more pigs looking for homes than has been the case recently, mainly due to reduced demand rather than extra numbers coming forward and although spot outlets were prepared to pay in the 155p/kg region to regular suppliers, those with extra pigs looking for a home had to accept quotes in the region of 150p/kg.

Despite an improving euro which traded on Friday worth 82.75p compared with 81.32p a week earlier, cull sow prices continued to slide reflecting poor European mainland demand with most delivered quotes in the 95p–97p region.

Weaner prices may also have hit something of a plateau with the latest AHDB 30kg ex-farm weaner average only a shade firmer at £46.31/head, but premiums were still available for Freedom Food standard pigs which remain in short supply.

The grain markets have generally been quiet with LIFFE wheat quoted remaining almost unchanged and March quoted at £207.75/t and July at £210.75/t and ex-farm feed wheat is now trading at around £200/t, which despite falling back from recent highs is still too expensive for pig producers to face with deadweight prices at their current levels.

Trafficlights Peter Crichton

TheMeatSite News Desk

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