UK pig prices - week ended 20 February 2016
The EU-spec SPP fell slightly in the week ending 20 February 2016, by 0.57p to 112.32p/kg.
For the second week in a row a more modest decline in price was recorded, although it represented the 14th consecutive week of decline, and may be an indication that prices are beginning to stabilise. There are also reports that the spot market has stabilised for this week, giving further indication that pig prices may be beginning to level.
The average carcase weight fell slightly by 0.2kg to 84.05kg. This could suggest that the number of pigs which have been held back due to low demand is declining and that they are starting to come forward to market when ready. However, carcase weights are still unprecedently high, having only fallen below 84kg twice this year to date. Estimated slaughterings increased again, by 2% week-on-week to 179,000 head, which is 7% up on the same period a year earlier, so supplies do not look to be tightening much, which could still cause further downwards pressure on prices.
The EU-spec APP declined very slightly by 0.14p to 117.17p/kg for the week ending 13 February 2016, down almost 22p on the same period last year. The gap between the APP and SPP grew to just over 4p, suggesting that more premium pigs came forward for slaughtering in this week than the week before.
Prices in the weaner market declined for week ending 20 February 2016, with 30kg weaners reversing the previous week’s price upturn to fall £1.73 to £35.47/head – the lowest price since May 2008. 7kg weaner prices fell a modest 12p to £29.05/head, over £4 less than the price recorded in the same time period a year earlier. Despite indications that the SPP may be beginning to stabilise, the price falls in the weaner market infer that confidence is still low in the finished market.
Vikki Campbell, Senior Analyst
vikki.Campbell@ahdb.org.uk, 024 7647 8622