TRAFFIC LIGHTS BASE
(EVERY THURSDAY EVENING)
July 19, 2018
July 15, 2018
The market maintains its lacklustre feel. Pig numbers available for market are below what's expected but this still doesn't create demand for pigs as some processors are extremely relaxed about being short of their contracted numbers.
Processors that operate a pricing methodology with an element of their own input reduced this element between 1p and 2p which reduced Q-prices by about 0.5p. This is against a slight increase of 0.16p in the SPP to 150.47p.
However the Tribune reflected more of the market sentiment with a 0.29p decline to 150.40p again mirroring the European drop of 0.30p to 122.35p. This 28p gap is also part of the reason British demand for pigs is somewhat depressed, as imported product is that much cheaper.
Spain was the only market in Europe that saw any increase, but it was minimal and very much down to seasonality whilst the Danes depressingly dropped below 100p a kilo for the first time since May 2016.
The sow market basically stood-on as did the exchange rate but this was against the background of reports that a few more sows across Europe were coming forward which is hardly surprising given the returns the retruns they've been facing.
Feed prices are currently well above average although the cereals market did experienced some relief through this last week and as the combines start to move this might offer some buying opportunities in the short term.
WEEKLY TRADING REPORTS
Thames Valley Cambac
ABOUT TRAFFIC LIGHTS
Traffic Lights is available to British pig producers on Thursday nights, advising next day's spot price sentiment. Traffic Lights is available on this website and (for the time being) on Twitter. The Traffic Lights spot base provides sellers who have one-off loads of spot pigs (as opposed to regular weekly supplies) with a realistic minimum base price. In many cases it should be possible to achieve premiums over base. During periods of oversupply the Traffic Lights price will be well below contract levels but the reverse applies when pigs are short, when spot base will be well above contract rates.
TRAFFIC LIGHTS SPOT VERSUS CONTRACT
Updated JuLY 19, 2018
EUROPEAN AVERAGE PIG PRICE
European average pig price
Above and below: the European Union average pig price continued upward in Week 28, despite those fairly dismal German and Danish prices.
BRITISH PIG PRICES
The independent British pig industry news and price reporting site
Compiled by Digby Scott