UK Pig Prices - week ended 30 January 2016
Whilst the EU-spec SPP price fell once again last week, it was at the slowest rate seen since before Christmas (week ending 12 December 2015). The price fell by 0.45p to 114.72 p/kg in the week ending 30 January 2016.
However, it is too early to yet say whether we will start to see the price firming going forwards, although the beginnings of a stabilisation would be greatly welcomed. This suggests that the surplus of pigs coming forwards following the holiday period could now be drawing to a conclusion, although supply levels are still in excess of demand. The EU pig price continued to firm during January, although the latest prices for week ending 24 January were released before the announcement came to suspend the Private Storage Aid scheme with a view of closing it. It remains to be seen what impact this will have on the EU price.
Slaughterings increased slightly to an estimated 186,900, a marginal weekly rise but a 13.5% increase on the same period last year. The average carcase weight increased again to 84.54kg (week ending 30 January), 0.6kg heavier than the previous week. This is the heaviest weight on record, and may illustrate that favourable growing conditions have now returned after a short cold weather period.
The EU-spec APP declined 2.05p to 119.54p/kg for the week ending 23 January 2016. This was almost 24p behind the same week last year. The gap between the APP and SPP grew to just over 4p, with the SPP showing a slightly greater fall during the same week.
Prices in the weaner market increased in week ending 30 January, following a couple of weeks of decline. 30kg weaners increased 35p to £36.45 per head and 7kg weaners increased £1.36 to £30.23 a head, bring their levels over the £30 price point again. This is the largest single week increase seen in the 7kg weaner price since January 2014 but is likely down to the mix of animals traded during the week. Certainly it is too early to say whether finishers are starting to increase their demand again, given the difficulties that are evident in the finished market.