Peter Crichton’s commentary for September 13, 2013

A quieter day for buyers and sellers following reports of lower EU mainland prices and a weaker euro, although the DAPP put on quite a spurt and now stands at a new high of 169.35p.

Tulip decided to stand on with its shout price, which remains at 168p/kg, whereas Gills took a more encouraging step by moving up a penny to 172p/kg.

With numbers still on the tight side, pigs were still relatively easy to sell, although spot prices drifted back by 1-2p/kg with the result that most were traded in the 173-176p/kg range.

The euro, however, has continued to slide falling in value by almost 1% and trading on Friday worth 83.68p.

A combination of a weaker euro and lower EU mainland pigmeat prices saw cull sow quotes drop by a further 3p and most are now trading in the 124-126p/kg region, but still well ahead of their value a few months ago.

Demand for weaners continues to improve at a modest rate, with the latest AHDB 30kg ex-farm weaner average quoted at £54.08/head compared with £53.70/head a week earlier; 7kg types are generally trading in the £36-38/head range according to spec.

Feed prices have remained relatively static, with ex-farm feed wheat quoted at £149/t and forward quotes on a delivered basis on the LIFFE futures market saw November wheat coming back slightly at £152.75/t and March 2014 at £157/t.

Providing that feed prices remain at these levels and there are no significant downward falls in pig prices, the remaining segment of 2013 should prove to be more rewarding than it was a year ago with most producers now in the black, but still a great deal of reinvestment to be carried out to repair the damage caused over so many unprofitable trading years.

> 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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