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Full contact numbers indicated ‘a decent undercurrent of demand’

Simon KingBy Simon KingJune 18, 20182 Mins Read
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Most of the majors required full contract numbers indicating a decent undercurrent of demand, according to this week’s Pig Marketing Summary from Thames Valley Cambac. The Summary said analysts were shocked therefore when two decided to reduce their contact price contributions.

One gave the reason of realignment to the market, which was fair. However, an easing of prices at this time of year is not unexpected, but with current increases in feed costs, it is an unwelcome squeeze on margins.

TVC - 18.06.2018

Supply improved slightly, but numbers remained on the tight side, with some producers still in the production period that was affected by the PRRS issues. The fresh meat market showed a touch more life in some areas on the back of some decent barbeque trade. Cull sow prices stood on, despite numbers being a touch shorter.

In Europe, the influential German market fell €0.03 due to processor pressure and was mirrored in Belgium. The rest of the European markets were similar pricewise, but price quotes in sterling fell due to a weaker Euro that ended the week down 0.45p at 87.32p.

The Weaner Marketing Summary reported that demand eased slightly, with the tightening availability of fattening units becoming a more important feature of the market. Supplies of both 7kgs weaners and 30kgs stores were plentiful. The prices announced by the AHDB saw no quote given for a 30kgs pig and the weighted average for a 7kg rise by 37p to £38.07.

 

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