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Comment

Always Look on the Bright Side of Life

Peter CrichtonBy Peter CrichtonOctober 24, 20203 Mins Read
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Although the German price has remained relatively stable and for the eighth week running is quoted at €1.27/kg, this only works out at the equivalent of 114.75p/kg, which is some 40p behind the SPP.

The latest SPP has continued on its downward track, falling by 0.17p to stand at 157.64p and underlines the yawning gap between EU and UK prices.

The spot market is virtually non-existent with supply continuing to exceed demand and although pigs from regular spot sellers were reported to be worth in the 145p region, non-Farm Assured one-off loads of spot pigs will be hard put to achieve anything over 140p and less in places.

Weekly contribution prices have continued their downward path with prices easing by a penny or two and most between 151p-145p. Covid also continues to cast a black cloud over the industry as processors attempt to maintain high volumes through their plants and cope with staff shortages.

An improvement in the value of the pound partly buoyed up due to the possibility of a Brexit deal of some sort being thrashed out has put downward pressure on the Euro which traded today worth 90.52p and as a result imported pig meat values have eased a touch and our exports are also worth less on the other side of the water.

Cull sow prices have remained at their very low level due to lack of processing space throughout much of Europe with most culls in and around 45p/kg.

Weaner prices are reported to be fragile in view of yet further rises in feed costs and the extremely uncertain outlook for finished pig values in the months ahead with the latest AHDB 30kg average quoted at £56.95/head but no 7kg average was available for this week, although 7 days earlier their average value was £42.08.

Signs are also emerging of some weaner contracts being re-negotiated (downwards in case you wondered) which also comes as no surprise bearing in mind soaring feed and straw costs.

Feed ingredient prices have continued to rise and have remained generally bullish with UK feed wheat futures traded for November at £193/t up by around £6 on the previous week and longer contracts for September ’21 have risen from £158/t to £162/t. Barley looks relatively good value up by £3 to £148/t for November.

Protein prices remain bullish with Hipro soya traded at £388/t up by £16 on the previous week and also up from £338/t to £345/t for June-October ’21.

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Peter Crichton

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