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Comment

Hang on in There

Matt PeskettBy Matt PeskettJuly 21, 20173 Mins Read
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Although some spot prices have eased back a shade, most stood on and the SPP continues its long-running rally, putting on a further 0.34p and now stands at 164.2p. Weekly contribution prices also took their cue from the spot market, with a near universal stand on.

Spot bacon prices generally traded in the 170p-175p region according to spec but are still significantly higher than their contract counterparts, although, as many of us know to our cost, the spot market is not for the faint-hearted!

Currency values did the UK pig market something of a favour towards the end of the week and a strong Euro, helped by a weakening pound, traded at 89.59p compared with 88.12p a week ago.

As a result, although EU mainland cull sow prices have remained at similar levels, export abattoir quotes rose by a copper or so, with most paying in the low to mid 90p region according to load size. But these prices are still lagging well behind their German counterparts, so in school report terms: ‘Could do better’.

Weaner prices remain firm, although the latest AHDB 30kg and 7kg average index figures have both eased a shade, with the 30kg average now standing at £61.34/head and 7kg at £43.49/head. But in both cases, spot sellers of good quality, large loads of weaners can still command a premium in the current market, although some buyers are preoccupied with harvest and straw carting, and when this is over, they should be looking to fill up empty yards in the run up to Christmas (that word already!)

UK wheat prices have eased slightly in the run up to harvest, falling around £2.50/t on the week and demand is reported to be ‘quiet’ as the wheat harvest approaches.

Current milling wheat premiums are around £12 higher than feed and barley looks something of a bargain, trading at a discount of around £25-£30/t.

Spot UK feed wheat traded on an ex-farm basis at an average of £144/t, and on the LIFFE futures market, November feed wheat was quoted at £148.50/t and next May at £154.40/t.

UK soya prices have remained at similar levels with 48% Brazilian soyameal traded in mid-July at £297/t but 34% rapemeal has eased by £10/t to £164/t.

And finally, it is good to read that pig producers’ share of the retail price has risen to a recent high and now stands at 43.8%, which is the highest rate received since 2009. But one word of caution relates to the fact that domestic consumerdemand for pigmeat is still under pressure and primary pork sales decreased in volume terms by 3%.

So now must be the time for some active promotion to take place by the industry while we have got some money in the bank to pay for it.

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