Mind the Gap - Peter Crichton commentary
21st Apr 2017 / By Peter Crichton
Prices have continue their upward track, with the SPP putting on another 1.11p to stand at 155.58p, and reports of spot pigs being traded as high as 165p in some parts of the country.
This continues to flag up an ongoing shortage of pigs throughout the whole of Europe (of which we are currently still a member!)
Weekly contribution prices have remained anywhere between +1p and stand on, and German prices also remained at similar levels on the week.
The only red ink prices today were in the cull sow department and generally drifted back by 1p, more due to the rising pound following Teresa May’s June 8 General Election decision which caught many pundits unawares but could prove to be a shrewd move on her part… we shall see.
The euro traded on Friday worth 83.78p compared with 84.85p a week ago, with the result that cull sow quotes tended to be in the 100p – 104p range in the main.
Weaner prices continue to improve, with more buyers than sellers, although the latest AHDB 30kg average has actually fallen to £55.51/head. This is, however, more of a quirk than a trend, with 7kg weaners averaging £39.81, but in all cases, significant premiums can be added to contract prices to arrive at equivalent spot values.
Futures prices on the LIFFE market are tending easier, linked to currency movements, with May feed wheat quoted at £146.25/t, November at £138/t and March 2018 at £141.80/t.
The latest AHDB ex-farm spot feed wheat price has firmed a touch to £144.70/t and UK protein prices included 48% Brazilian soyameal ex-Liverpool traded at £311/t and 34% rapemeal at £188/t.
And finally, the latest Farm Business Survey figures have indicated a wide gap between the best and the worst performing pig units in 2015/16, with farms in the top 25% performance category earning an average of £122,000 per annum compared with the worst performing units which lost almost £60,000 over the same period.
As mentioned in last week’ s commentary, now is the time for producers to reinvest in worn out facilities and to be ready to face whatever may lie ahead in our new post-Brexit life!