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Comment

Steady As She Goes

Matt PeskettBy Matt PeskettAugust 7, 20173 Mins Read
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Although the SPP moved up another 0.32p to stand at 164.75p, a few more pigs seem to becoming available and spot buyers were slightly quieter than they have been in recent weeks, with most deals in the 167p-172p range according to spec.

A case of ‘more of the same’ as far as weekly contribution prices are concerned, most of which remained unchanged on the week, but a glance at the calendar indicates that the bank holiday is just over three weeks away but hopefully, unlike in previous years, this will not cause too much disruption to the slaughtering week.

A firmer Euro was traded on Friday afternoon worth 90.49p, a 10 month high, and helped to put a penny or so into cull sow quotes, although German pigmeat prices are reported to have remained at similar levels on the week.

As a result, culls were generally traded in the 94-97p range compared with 87p this time last year.

Weaner prices continue to maintain recent values in the main, with the latest 30kg AHDB ex farm average up by 38p to £59.87/head, but 7kg prices were a shade easier, losing 27p and now stand at £44.34/head, but large loads of spot Farm Assured piglets are still well ahead of their contract counterparts for the time being.

With the wheat harvest gathering momentum, UK cereal spot prices are flagging up slightly easier trends, with the latest new crop ex-farm UK spot average quoted at £134.30/t, but the futures markets are showing slightly better demand with November quoted at £143.50/t and March next year at £147.30/t.

Recent falls in the value of sterling to a 10 month low against the Euro will add value to UK wheat and barley export prices but the supply and demand balance will also have an influence on cereal prices and markets in the weeks ahead, but producers would still be well advised to keep a wary eye on currency values when making grain buying decisions.

And finally, on the Brexit front, the NPA have wisely called for a transition period to soften the effects of the UK leaving the EU and to see if some existing European markets could be retained during the negotiation period prior to the implementation of a Free Trade Agreement between the EU and the UK, which could possibly continue beyond the termination of Article 50 process…

We shall see, but Brexit is a divorce process and divorces often lead to a lot of broken crockery as many out there will know!

(apologies for delay in posting last week’s updare! – AD)

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