UK pig prices - week ended 2 January 2016
In the week ended 2 January, the EU-Spec SPP fell by 1.49p compared to the previous week, to 121.97p/kg.
This is the seventh consecutive week that prices have fallen and equalled the largest weekly drop since last February. In week ended 26 December, the SPP was at 123.46p/kg a decrease of 0.77p/kg on a week earlier. The fall in price over the past two weeks comes as demand lessens after the Christmas procurement period, while slaughterings for this week were estimated to be lower than the corresponding week a year earlier. The current quote is over 20p behind the same week a year ago, despite the price decreasing at a similar rate then.
Estimated slaughterings for week ended 2 January increased by 3,500 head compared to a week earlier to 112,700 head. However, with the Christmas holiday shutdowns, estimated slaughterings for week ended 26 December fell by 77,500 head week on week, to 109,200, although this was 17,400 head more than the same week in 2014. The average SPP carcase weight for the last two weeks has increased as producers hold onto pigs for longer over the festive period. For week ended 2 January, the average carcase weight was 83.02kg, the heaviest weight since February 2015.
The EU-Spec APP fell by 1.47p to 127.68p/kg in week ended 26 December, the largest weekly drop since early 2015. In week ended 19 December, the APP fell less sharply, by 0.11p to 129.15p/kg. The quotes for the past two weeks are both down on the year before, with the APP for week ended 26 December 19p lower than a year earlier. Having reached its highest level since June in the previous week, the gap between the SPP and APP narrowed to 4.22p as the SPP recorded a sharper fall in Christmas week.
Prices in the weaner market recorded diverging trends in the week ended 2 January. 30kg weaner prices fell by £1.85 per head to £39.04 per head, which is the lowest price since September 2012. However 7kg weaner prices increased week on week by 44p per head to £31.55 per head. In week ended 26 December both 30kg weaners and 7kg weaners increased in price on the week, to £40.89 per and £31.11 per head respectively. The current quotes for both weaner categories are behind those of last year, by £5.34 (30kg) and £3.11 (7kg).