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Shout Price Operators Leave Prices at Stand-on Levels

05 February 2013

UK - After almost four months of falling prices demand looks as though it has now turned the corner, although at this stage the DAPP remains in decline due to the historical nature of its calculation and has slipped to 158.48p, but Tulip stood on at 156p for the third week running and unlike last week, the other four major shout price operators all decided to leave their prices at stand-on levels rather than cut them back any further, writes Peter Crichton.

Most of the action however was seen in the spot market where opening shots of 143p/kg missed the target and to secure the numbers required buyers had to think in terms of a minimum of 145p/kg with some having to go as far as 150p/kg at a time when pig numbers are starting to tighten, although retail demand still remains fickle.

As a result the latest shout price league table remains exactly the same as last week:

158p Woodhead
156p Tulip
154p Gill
153p Karro (formerly Vion) 153p Cranswick.

Prices were also helped by a rampant euro which moved up more in a day than many of us with long memories can remember; opening at breakfast time worth just under 86p and trading at teatime worth 87.05p which also needs to be measured against its value seven days ago of 85.18p, which represents a rise of 2.1 percent in seven days and its highest value relative to the pound since November 2011.

As a result cull sow prices have continued to move ahead with quotes now in the 98p–100p/kg region according to load size and spec, and signs that there may be more to come in the weeks ahead due to forecasts of better demand and slightly reduced supply across the European Union mainland.

Unfortunately the downside of a stronger euro is that this also has the effect of increasing feed prices and ex-farm feed wheat is now quoted at £208.00/t and March futures have improved by another £1.20/t to £213.50/t with November also up and now quoted at £191.75/t.

Better prospects for finished pig prices should also rub off on the weaner market and although the latest AHDB 30kg ex-farm average remains almost unchanged at £46.51/head, some spot buyers are returning to the market which should help to put prices up in the weeks ahead.

At least January is behind us for another year and pig producers will lose less in February… as it is a shorter month!

Trafficlights Peter Crichton

TheMeatSite News Desk

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