TRAFFIC LIGHTS BASE
(EVERY THURSDAY EVENING)
September 13, 2018
We'd lose our
September 16, 2018
The market was dominated by discussion about the arrival of African swine fever in Belgium. This latest outbreak is obviously not through pig-to-pig contact given the distance from any other incidence of the disease in Europe which makes this even more concerning.
Therefore we must be even more vigilant. There will be the obvious zonal demarcation restricting movement of pigs as a consequence and product from these regions will not be allowed to be exported to any other country.
However, China's rules are different and once a country has contracted the disease. There is a total ban from China receiving and pigmeat products from Belgium regardless of whether they are from within the zone or otherwise.
This protocol is extremely disturbing because although Britain's largest export market is Europe, the Chinese market has become extremely important and adds significant value to the British industry.
And given China does not accept Europe's zonal restriction rules, this would render the arrival of African swine fever in Britain as catastrophic.
Tradewise on clean pigs, another stand-on week with supply meeting demand, both of which were uninspiring.
Pig weights have remained stable since the beginning of August and are behind last year's at the same time by 1.54kg. Most of this is as a consequence of poorer growth through the heat of the summer but many farms are reporting full pens and needing to keep the weekly sales up for room purposes more than target sale weight being attained.
The SPP (148.05p) now sits at just over 14p below this period last year and with feed prices at least doubling that burden, many producers, are at best on breakeven.
The sow trade was poor with demand diminishing bringing downward pressure on prices resulting in circa 3p reduction.
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. 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.
PIG PRICE BAROMETER
Updated SEPTEMBER 19, 2018
EUROPEAN AVERAGE PIG PRICE
End of European
Week 36 — well we new it was coming and here it is... a marked downturn in the European Union average pig price, as Germany's recent rally suffers a rapid reverse.
BRITISH PIG PRICES
The independent British pig industry news and price reporting site, compiled by Digby Scott and Peter Crichton