The pig price fall which has seen the GB Euro Deadweight Adjusted Pig Price drop from a 2011 high of 152.92p/kg in late July appears to have bottomed out, writes FW commentator Peter Crichton.
The DAPP rose in the week ended 21 October by 0.56p to 145.08p/kg. Weekly shout prices also moved up reflecting stronger demand for contract bacon pigs.
Tulip set the trend, increasing prices by 2p to 144p/kg and, with the exception of Woodheads which went up 1p to 146p/kg, the other major players also recorded 2p rises.
The pig and cull sow market has been significantly boosted by rising export demand in China for fifth quarter pig products and there are signs that the overall market trend could continue on an upward path as Christmas approaches.
Spot buyers were looking for extra numbers to meet rising demand and spot bacon was generally traded in the 147–149p/kg range with lighter pigs or those on a tighter spec worth between 150–156p/kg.
Although the value of the euro eased a shade last week, closing at 80.07p compared with 87.63p a week ago, cull sow quotes moved up with most export abattoirs prepared to lift their bids by 2p/kg, with cull sows generally traded in the 110-112p/kg range according to specification.
The weaner market remains a somewhat neglected sector with prices still in the doldrums.
The Agricultural and Horticulture Development Board 30kg ex-farm average quote remains at £40.03/head, although some buyers are showing more interest in 7kg weaners for finishing in early 2012.