Market commentary: Just Hold On
11th Nov 2017 / By Peter Crichton
After many weeks of falling prices, signs are starting to emerge of the rate of decline levelling out, with a little more interest being shown in finished pigs in the run up to Christmas than had previously been the case.
Although the SPP dropped another 0.87p to stand at 155.16p and weekly contribution prices were down by between 1p – 2p/kg, there was something of a stand on (or possibly hang on) feeling in the air with spot bacon prices holding in the 140p region.
Although German producer prices have remained at stand on levels for the second week running, a reduction in the value of the Euro, which traded on Friday worth 88.29p compared with 88.99p a week ago, was a signal for cull sow buyers to knock a penny off sows, which are now worth even less at in or around 70p/kg.
Weaner prices are also tending easier with the latest AHDB 30kg ex farm average now quoted at £56.19/head and 7kg weaners have also eased to £42.02/head.
In the commodity markets, global wheat futures have dropped slightly with UK feed wheat for November quoted at £139.55/t, March at £144.20/t and July at £148.45/t.
UK protein prices have eased a shade with 48% Brazilian soya falling from £317/t on the 20th October to £301/t as at November 3.
“Every little helps”, as quoted by a certain supermarket and with pig prices back from their recent peaks, any feed cost savings should help redress the balance slightly.
Any finally, just a reminder that all Red Tractor producers will need to upload their total antibiotic use onto the electronic Medicine Book (eMB) on a quarterly basis, rather like when VAT was first introduced and, although it may seem a chore, once you are up to date it is less of a problem and another good reason for consumers to be persuaded to eat 'healthy' UK pigmeat.