Peter Crichton’s commentary for November 1, 2013

Although the DAPP has moved ahead a shade and now stands at a new high of 172.10p, last week’s warnings that EU mainland pigmeat prices might be heading south proved to be correct, which could have a negative impact on UK pig prices in the run up to Christmas.

The two remaining shout prices stood on with Gills at 172p and Tulip at 168p, but spot bacon buyers were generally operating at similar levels to last week with quotes mainly in the 174-176p/kg range, and with more pigs being switched away from contract, spot supplies were more plentiful than recently.

Cull sow prices remain a valuable barometer as far as EU mainland pigmeat values are concerned and falls of between 6-8p/kg were met with dismay by UK sow sellers, resulting from high stock levels in Europe and chillers filled to capacity. This is due to a mixture of better supply and a reduction in export demand and home consumption with most cull sows traded within the 110-113p/kg range.

Weaner prices are continuing to hold at similar levels, with the latest AHDB 30kg ex-farm weaner average at £54.26/head, but significant premiums are being paid for 30kg Freedom Food weaners. 7kg Freedom Food piglets were trading in the £38-40/head region.

The cereal markets have had a relatively quiet week with ex-farm feed wheat quoted at £159/t and futures prices also largely unchanged with November trading at £164.50/t, but July 2014 has risen to £170.25/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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