Rising spot prices fail to move pig processors’ weekly offer
Most weekly contract or “shout” prices have been at similar levels for six weeks now, despite rises in the spot market and a slowly improving Deadweight Adjusted Pig Price (DAPP), which now stands at 160.13p/kg dw.
Spot bidders were generally prepared to take reasonable numbers and to pay in the 162p-164p/kg region for spot bacon, depending on specification.
| Processors’ weekly prices | |
|---|---|
| Woodheads | 163p |
| Gills | 160p |
| Tulip | 159p |
| Vion | 159p |
| Cranswick | 158p |
A slight improvement in the value of the euro (worth 80.9p on Friday 23 November) did nothing to arrest a drop in cull sow prices, which have fallen by an estimated 3p/kg, with the result that most culls are now traded in the 113p-116p/kg range, according to spec.
This fall is apparently due to a reduction in demand at a time of year when there is enough product in the system to meet Christmas consumption levels, rather than a pointer towards significant falls in European pigmeat prices as a whole.
Weaner prices are continuing to improve, reflecting hopes that finished pig values may follow an upward track next February/March, based on estimates of falling European production levels in the wake of the stall and tether ban, as well as herds being culled due to very high feed prices.
The latest Agricultural and Horticultural Development Board (AHDB) 30kg ex-farm weaner average now stands at £45.12/head and 7kg pigs are generally trading in £30/head-plus territory, with premiums available for Freedom Foods.
Feed prices, however, remain the major talking point, with November wheat quoted at £215.50/t and next May as high as £222/t, putting further pressure on production costs.