UK pig prices - week ended 16 April 2016
In week ended 16 April, the EU-spec SPP increased for the second week running, by 0.40p to 113.26p/kg.
Although this is only a slight increase on the week, prices have now increased in four of the last six weeks, which suggests that UK pig prices have hit the bottom, for now at least. Furthermore, there are still two full processing weeks before the next Bank Holiday, so demand might be expected to remain stable until then. The current quote is still over 19p behind the same point last year. However, the gap is narrowing further, as the price quoted at the same point in 2015 increased at a slower rate.
The average carcase weight decreased slightly on a week earlier to 83.65kg, suggesting supply is relatively balanced with demand. However, the current weight is still 1.25kg heavier than the same point last year. Estimated slaughterings increased further (+5%) from the previous week, to 180,700 head, a level last recorded at the beginning of March. Compared to last year, estimated slaughterings were 6% higher. However it is worth bearing in mind that this week was the first full week after Easter last year.
The EU-spec APP also increased once again in week ended 9 April, by 0.46p to 116.78p/kg. This is the highest price recorded since mid-February. The gap between the SPP and APP has increased further but remains under the 4p threshold at 3.9p, as the APP rose further than the SPP for that week.
Differing price trends were recorded by the two weaner categories in week ended 16 April. 30kg weaners fell by £2.26 to £35.67 per head, losing the gains made a week earlier. Nevertheless, after its modest decline last week, 7kg weaners recorded an increase week on week of 46p, to £28.99 per head. Compared to last year, both 30kg and 7kg weaners are down on the price for the equivalent week, by £7.67 and £4.14 respectively.
Millie Askew, Analyst
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