UK pig prices - week ended 6 February 2016
The EU-spec SPP fell 1.30p to 113.42p/kg in the week ending 6 February, as the industry sees the pig price decline for the 12th consecutive week.
This would suggest that supplies from the finisher market are still in excess of demand and reports this week that heavier pigs have been causing machinery to break down may go partially towards explaining this backlog. The average carcase weight has decreased slightly – down 0.3kg to 84.22kg but weights are still historically high and anecdotally having a detrimental effect on processing machinery. Continued mild weather aids favourable growing conditions, although temperatures are forecast to return to near normal levels for February, which may assist in slowing the growth rate. Slaughterings showed their first decrease of 2016 – down 2% to 182,900 head and may be the first signs that production levels will tighten seasonally as we move into the spring. Slaughterings are still estimated 3% higher than this time last year, however.
The EU-spec APP declined 1.31p to 118.23p/kg for the week ending 30 January, over 25p behind the same week last year. The gap between the APP and SPP fell to 3.5p, the lowest level for over a year, which may be indicative of the mix of pigs coming forward for processing.
Prices in the weaner market declined this week following last week’s upturn. 30kg weaners fell 59p to £35.86 and 7kg weaners fell 66p to £29.57 (week ending 6 February), falling below the £30 mark for the second time this year. This would suggest that the lack of confidence experienced in the finisher market is once again translating into the weaner prices.