UK pig prices - week ended 29 August 2015
Supply and demand remain largely balanced, with the EU-spec SPP rising for the first time in four weeks to 132.43p/kg in week ended 29 August.
The euro rose slightly compared to the pound last week, which could have been a contributing factor to the small increase in the SPP. While the current quote is still 25p down year on year, the gap is narrowing as the price was falling in the same week last year. Estimated slaughterings for week ended 29 August were fractionally down on a week previously but recorded a 14% increase compared to the equivalent week in 2014, when there was a Bank Holiday. The average SPP carcase weight for the same week was around half a kilo heavier than a week earlier, the heaviest weight since late June but 110g less that the same week in 2014. The increase in carcase weights is normal for this time of year and the trend can be expected to continue in the coming weeks.
The EU-spec APP fell very slightly to 136.61p/kg for week ended 22 August and had decreased by 24p/kg compared to the same week in 2014. The gap between the SPP and the APP stays at over 4p/kg, having increased slightly from the previous week, as the SPP dropped more.
In week ended 29 August, the 30kg weaner price fell to its lowest level since October 2012, at £41.21 per head, down nearly £3 on the week. Much of this fall was reported to be due to a change in the mix of pigs sold, however. Therefore, while the market may be under a little pressure, it is probably a bit early to say that it has taken a distinct downturn. This is reinforced by a much more modest drop in the 7kg price, to £32.13, although this does represent the lowest price since the series began in mid-2013. Prices for both categories of animal remain well below year earlier levels.