Shout Price Hits 170p at Last18 June 2013
UK - Another positive week as far as sellers are concerned with DAPP continuing to edge ahead and now standing at a new high of 165.26p and, with the disappointing exception of Cranswick, writes Peter Crichton.
All the major shout price operators followed Tulip's 2p rise with the result that the latest shout price league table now reads as follows:
Spot demand remains firm with spare pigs in short supply, with the result that most spot bacon was traded in the 173p–175p/kg range and those looking for lighter weights now need to be thinking in terms of 180p/kg or more.
The euro has maintained recent values ending the week virtually unchanged at 85.09p, but sow prices are continuing to move ahead reflecting further improvements in continental manufacturing pigmeat values, coupled with reports of an upcoming supply shortage. As a result most cull sow buyers lifted their bids by a further 2p–3p/kg and sows were generally traded in the 105–108/kg range with premiums available for large loads as numbers start to tighten up.
Weaner prices are also reflecting much better finished pig returns and the latest AHDB 30kg ex-farm weaner average is now quoted at £51.56/head which is its highest level since July 2010.
Weaner availability is continuing to tighten which may also point to a reduction in finished pig supplies in the late summer, early autumn and Freedom Food standard weaners are generally trading in the £53-£55/head range and 7kg demand continues to improve with Red Tractor 7kg pigs worth between £34-£36/head and Freedom Food in the £37.50-£39/head bracket.
The cereal markets are also painting a slightly brighter picture for pig producers with July wheat now quoted at £165.40/t and November at £16760/t.
Better weather prospects in the US has put downward pressure on maize and wheat prices and further falls in this sector would come as a bonus to pig producers, although many have yet to receive any direct benefit until their current feed contracts expire and they are able to lock into lower prices.
TheMeatSite News Desk