UK pig prices - week ended 23 April 2016
The EU-spec SPP increased for the third week running in week ended 23 April, by 0.23p to 113.49/kg.
Although this is only a modest increase on the week, it reiterates the point made last week that UK pig prices may have hit rock bottom. It would also suggest that demand has remained relatively stable since the Easter Break. However, we now only have one full processing week before the next Bank Holiday, which you could mean a reduction in demand due to the long weekend. Compared to the same point last year, the current quote is 18p less. However, the gap between the two years continues to narrow as the price quoted at the same point in 2015 was falling.
The average carcase weight decreased on a week earlier once again, by 0.20kg to 83.45kg. This reaffirms the point that supply is relatively balanced with demand. Nonetheless, the current average remains above the 83kg threshold recorded since the start of the year and is 1kg heavier than the same point last year. Estimated slaughterings decreased week on week by 3% to 175,800 head. Despite the weekly decrease, the latest throughput remains 5% ahead of the same point in 2015.
The EU-spec APP also increased in week ended 16 April, albeit by only 0.03p, to 116.81p/kg. The gap between the SPP and APP remains under the 4p threshold and has contracted further to 3.55p. This is because the SPP increased at a greater rate than the APP during the same week.
Both weaner categories recorded an increase in prices during week ended 23 April. 30kg weaners rose by £1.68 to £37.35 per head, while 7kg weaners increased by 59p to £29.58 per head. There are signs that 7kg prices, in particular, may have turned a corner, with the latest price around £2 up on a month earlier. 30kg prices have fluctuated more but without setting a clear direction. Despite the latest increase, the current quotes for 30kg and 7kg weaners are £6.72 and £3.15 respectively behind the equivalent week last year.
Millie Askew, Analyst
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