EU pig prices rise in build up to Christmas
The declines seen in the EU average pig price since September came to an end in the past four weeks, with prices rising by just over €4 to reach €155.12/100kg in the week ended 11 December.
As prices were still falling at this stage last year, the gap between this year’s and last year’s prices has widened, leaving prices over €29 ahead of the same week in 2015. This rise in prices is likely to be due to a seasonal rise in demand in the build up to the Christmas period, while supplies are thought to have been tighter following some rationalisation of breeding herds in key producing countries. However, with the Christmas procurement period coming to an end, prices could begin to come under more pressure in the coming weeks.
Prices in Germany, the most influential producing nation, have seen larger than average increases during this period, rising throughout the period. The German reference price was up by €8 on four weeks previously at €164.07/100kg. Price rises have also been seen in other major northern producers such as Denmark, the Netherlands and Poland. Prices in Spain strengthened in the most recent week but they remain lower than four weeks previously after earlier falls. French prices were static over the last month.
Prices in the UK have continued to increase in the past four weeks, with some recovery of the pound adding to the rises in euro terms. This has led the UK average reference price to remain above the EU price. In sterling terms, the most recent UK figure was over 19p higher than the EU average price. This is similar to the previous three weeks but otherwise represents the largest price premium since January.
Mark Kozlowski, Senior Analyst
email@example.com, 024 7647 8631