May 11, 2010
UK sees positive demand for spot pigs
A weaker euro leads to cheaper pork imports from Europe, and UK pig farmers are hoping that commodity speculators are more concerned about the pound than the euro.
Prices took their cue from the deadweight average pig price (DAPP) which moved up to GBP143.96 (US$212.86) and consequently, most spot quotes remained a stable average of GBP144 (US$212.9), but with slightly firmer demand for lighter weights which were traded GBP4–6 (US$6-9) ahead of this.
Although EU mainland pork prices increased last week, it did not affect the European cull sow market which remains under pressure mainly due to low-priced competition from non-EU countries.
With the instability and uncertainty of the value of the euro, sow prices tended to be below GBP100/kg (US$150/kg), except for large loads, with which the majority are traded for GBP97-100/kg (US$145.6-150/kg).
The recent rise in weaner prices have hit a record of Agriculture and Horticulture Development Board (AHDB) 30kg ex-farm average quoted at GBP54.52/head (US$81.8/head), but current weaners are likely to be slaughtered in mid to late August when prices usually start to fluctuate.
