UK pig prices - week ended 13 August 2016
In week ended 13 August, the EU-spec SPP rose once again to 135p/kg, a total increase of 1.02p on the week and the highest since mid-February 2015.
Furthermore, the current quote remains above the same point in 2015, with the gap widening further to 2.43p/kg. Similarly to last week, a further weakening of the sterling against a basket of currencies, including the euro and dollar, is making domestic pork competitive on both home and international markets. This is helping to drive demand for British pigs and is the main driver of the strengthening market.
Estimated slaughterings decreased slightly (1%) on the previous week to 172,700 head and down 1% on the same point a year earlier. The modest tightening of supplies is also contributing to rising prices. The average carcase weight of the sample marginally increased on the week to 81.63kg, which is also 1.4kg heavier than the same week in 2015.
In week ended 6 August, the EU-spec APP also recorded an increase of 2.45p to 136.11p/kg. This is the highest weekly price in almost a year. Nonetheless, the current quote remains below the same point last year by 0.92p, although the gap is narrowing. The gap between SPP and APP has closed to just over 2p/kg, its lowest level for over two years. This is likely to be due to a combination of prices for standard pigs rising somewhat faster than for premium pigs and a reduction in the number of premium pigs being marketed.
Both weaner categories continued the upward price trend in week ended 13 August. 30kg weaners rose by 22p to £45.04 per head, the first time it has topped £45 since last September. Meanwhile, 7kg weaners increased by 5p to £32.73 per head. The current 30kg quote is £1.43 higher than the same week in 2015, while the 7kg quote remains below by £0.45/head.
Millie Askew, Analyst
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