UK PIG PRICES - WEEK ENDED 16 JANUARY 2016
Last week was yet another difficult one for the finished pig market with marketings still yet to settle down so far this year and demand weakening.
The SPP declined sharply for the third consecutive week to a new low as supply continued to outstrip demand. This is despite the market being more settled on the continent with prices moving up last week and the weakening of Sterling offering the only consolation. The UK pig premium is still evident, however, but falling.
The EU-spec SPP in the week ended 16 January fell 1.40p to 117.69p/kg the ninth consecutive week of decline. It is now at its lowest level since April 2008 based on comparison with the DAPP. During the same week slaughterings rose to 184,900 head, up 2% on the week before and 8% more than in the same week last year indicating that supplies are still coming forward to market. The average carcase weight continued to increase, albeit at a slower rate, up 0.2kg from the previous week to 84.25kg the highest level on record. The festive period delayed marketings, helped by the mild weather which contributed to good growing conditions.
The EU-spec APP saw a significant decline of almost 4p to 123.19p/kg in the week ended 9 January. This is over 21p behind the same week last year. This was an even sharper fall than for the SPP for the same week so that the gap between SPP and APP fell to just over 4p.
Prices in the weaner market decreased for both 30kg and 7kg categories in the week ended 16 January. For 30kg weaners prices decreased £1.66 bringing the average down to £37.93. 7kg weaner prices experienced the largest weekly decrease since November 2014, of £1.28 to £30.06 per head. Prices were largely down due to new contracts in place at lower prices and a change in the mix of pigs. Current prices for both weaner weights are significantly down on the same period last year, by £8 (30kg) and nearly £4 (7kg) respectively.