Demand below expectations

This week’s Pig Marketing Summary from Thames Valley Cambac reports demand is not what would normally be expected for the time of year and especially with the continued good weather coupled to the growing World Cup mania that would have the majority of UK BBQ’s lit!

THAMES VALLEY CAMBAC Ltd
The one thing that is helping the price hold is the fact that there is still a distinct shortage of pigs coming through, many producers are suggesting they are through the worst in terms of performance but growth in the growing pigs is being stunted with the very warm weather. We can also expect this heat to impact adversely on breeding performance which is another negative but it will reduce slaughter pig numbers coming forward in the usually depressed trade period of January & February.

All processors contract prices stood on with the exception of where the SPP influences as it rose by 0.28p.The CO2 shortage is still causing issues, Tulip’s Brechin plant has now been down for over a week and still doesn’t look like it will be up and running much before the middle of next week at best. Many of the other plants are limping through with some reverting to electrically stunning to make full kills.

The price differential between the UK and EU remains significant at circa 0.28p which is aggravating the situation as imported product is very attractive. Sow prices have taken a hit in most places following the last few weeks of slight increases, the majority reducing prices by 3p citing lacklustre demand across Europe as the reason. The exchange rate of 88.55p ends the week very similar to the close last week which was 88.52p

In the Weaner Marketing Summary, the market continues to be extremely slow, very little demand for anything outside of contracted supplies or Freedom Food registered. Buyers that would normally take extra’s over their contracted numbers are reluctant to do so, as the additional feed required over and above what they have bought forward is considerably more expensive with the recent increases in raw materials, which were already at the upper echelons of normal levels.

 

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