Peter Crichton’s commentary for June 28, 2013

In years gone by June used to be associated with scorching hot weather. Unfortunately this is currently not the case and the lack of improved barbeque demand has meant that prices have generally stalled and in some cases might even slip back a copper or two.

Although the DAPP continues to reach new highs and moved up 1.03p to 167.44p, Tulip decided to stand on with Gills following suit, but Cranswick’s unfortunate decision to drop to 163p disappointed sellers and this move was also followed by Karro and Woodheads, so the rain gauge now reads as follows:

Woodheads, 169p
Gills, 168p
Tulip, 167p
Karro, 165p
Cranswick, 163p

This wide variation in prices does not however take account of various “stealth payments” made below the line is continuing to undermine the much disliked and unpopular shout price system.  This is further underlined by the yawning gap between spot and contract prices and sellers will be putting abattoirs under pressure to come up with alternative pricing systems in the months ahead.

Most spot buyers were prepared to stand on but with a few extra pigs being pulled away from contract there was less pressure on numbers and spot bacon was generally traded within the 170p – 174p/kg range.

European prices also appear to have levelled and would benefit from the return of better weather across northern Europe with the result that cull sow quotes have remained virtually unchanged with most culls traded in the 109p – 112p/kg range according to spec.

The value of the Euro has also hardly moved ending the week worth 85.54p.

Although weaner prices have risen by £6 per head since the start the of the year with the latest AHDB 30kg ex farm average now standing at £52.50/head, buyers were tending to operate in stand on mode for next week due to slight concerns over finished values in the months ahead.

The outlook as far as grain prices are concerned is however looking favourable from the pig producer’s point of view with July wheat quoted on the LIFFE futures market at £158/t and November at £166.25/t.

> Suffolk-based Peter Crichton is an auctioneer Peter Crichton provides a wide range of valuation, auction and livestock marketing services, as well as supplying the UK pig industry with a wide range of consultancy services covering tenancy, contract advice, pig equipment and herd valuations as well as dispute resolution. For more information visit: www.petercrichton.co.uk

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