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Peter Crichton

Peter Crichton’s commentary for September 26, 2014

PW ReportersBy PW ReportersSeptember 26, 20143 Mins Read
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It was another difficult day for sellers, with prices still falling, mainly due to an oversupply of pigmeat throughout much of mainland Europe. The causes include the Russian import embargo, not to mention extra numbers coming forward on domestic markets at the same time.

Although the DAPP only slipped marginally this week and now stands at 156.25p, demand for spot pigs was noticeably easier with base prices as low as 140p/kg being quoted and very little enthusiasm among either contract or spot buyers for extra numbers that are becoming available.

As the demise of the DAPP approaches, reports are being received of some abattoirs looking to either renege or renegotiate contracts on the basis that the DAPP will no longer be published. Sellers are reminded that the SPP (Standard Pig Price) has been running in parallel with the DAPP for several months now and, for most of that period, has proved to be very similar to the DAPP indicating that this would form a suitable basis for a new contract base price. Signs are emerging that some abattoirs are looking to return to the “shout” price system, which they’re now referring to as the “weekly announced” price.

The flow of much cheaper imported pigmeat has also been helped by the rising value of sterling; the euro slipped in value to 78.08p on Friday and this has also hit cull sow returns with the two main buyers quoting prices between 82-84p/kg according to spec.

Weaner prices continue to suffer due to a lack of finishing space and extra numbers in the system, with reports of much better prolificacy from breeding herds and, although the AHDB 30kg and 7kg weaner prices look relatively static, spot weaners have proved harder to sell.

The latest AHDB 30kg ex-farm weaner average is £53.15/head and 7kg £38.15/head, but sellers of spot weaners may have to face discounts of £3-4/head less.

One bright point (providing you’re not an arable farmer) is the continuing fall in feed ingredients with plenty of red ink on the futures market, which saw LIFFE quotes for November feed wheat at £107.75/t and January 2015 at £109/t.

The latest Farmers Weekly spot ex-farm feed wheat price has dipped below the £100/t benchmark and is recorded at £99.70/t.

And finally, there’s an 800 sow outdoor kit sale near Norwich to look forward to tomorrow (September 27). Click on the following link to download a catalogue: http://petercrichton1.webeden.co.uk/forthcoming-auctions/4548284492

> Based in Suffolk, 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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