The Final Countdown
29th Sep 2018 / By Peter Crichton
Prices seem to be holding at recent levels although a lift in demand would work wonders. The latest SPP has virtually stood on only losing 0.09p to stand at 147.68p, but weekly contribution prices appear to be under pressure with falls of up to 2p/kg and most in the 132-138p range.
Spot bacon buyers remain quiet and although there are reports of one off loads of bacon pigs changing hands at around 140p volumes are low with most pigs being sold under contract.
Cull sow prices have for once held at similar levels after several weeks of falling values with export prices quoted in the 66-68p range although the falling value of the Euro has done us no favours trading today worth 88.79p compared with 89.3p a week ago.
Weaner prices continue on their roller coaster ride with the latest AHDB 30kg ex farm average up by £4.18 to £55.16 but the 7kg average has travelled in the opposite direction losing .51p and is now quoted at £34.50.
As previously the gap between Red Tractor and Freedom Foods weaners continues to widen and spot pigs in all weight ranges are in something of a buyers’ market.
Feed prices have remained at generally similar levels with London feed wheat quoted at £176.45/t for November, rising to £181.50 for next March.
Spot UK feed wheat prices have improved marginally up to £170.50/t but soya has eased by £10/t over the past two weeks with 48% soya meal ex Liverpool quoted at £318/t and 34% rape meal ex Kent also displaying slightly easier trends at £217/t.
On the brighter side however straw prices are reported to have eased significantly with deals now being done in the £70/t region compared with £85 plus earlier on.
And finally, a Brexit 'no deal' could have serious financial consequences as far as the UK pig industry is concerned if exports to the EU are barred but imports continue to flow in this direction.
There are a whole host of bureaucratic hurdles to be jumped before the effect of Brexit (or not) can be fully analysed but the NPA are displaying great concern over the effect that Brexit will have on our export trade with more than 110,000 tonnes of pig meat being exported to the EU from the UK in the past 7 months which works out at around 60% of all UK pig meat exports.