UK pig prices - week ended 9 July 2016
The EU-spec SPP continued to climb in week ending 9 July, by 2.8p to 126.57p/kg.
This is the largest week-on-week increase since the SPP began, and for a number of years prior. The current quote returns the price to levels last recorded in November 2015, and now stands at less than 7p behind the same point a year earlier. The tightening UK pig supply, robust export demand and strong EU prices have helped support the UK price, although the structure of the UK market means that the full effect of recent currency movements are yet to be reflected in the SPP.
Estimated slaughterings rose by 3% on the previous week to 170,000 head, and while they were only back 1% on the same week a year earlier this represents the eighth consecutive week of lower throughput compared with last year. This would suggest that the supply and demand situation has tightened even further. The average carcase weight fell modestly from the previous week, by 0.06kg to 81.67kg, which is 1.33kg more than the same point a year earlier.
The EU-spec APP also increased once again in week ending 2 July, by 1.15p to 126.77p/kg. This reduced the gap between the APP and SPP to 3p, which is the smallest difference since October 2014.
Both 30kg and 7kg weaners recorded price increases for week ending 9 July. 30kg weaners recorded a price increase of £1.54 to £42.82/head, while 7kg weaners increased by 88p to £31.06/head. These increases return 30kg weaners to prices last recorded in October 2015 and 7kg weaners to levels last seen at the beginning of this year. However, both 30kg and 7kg weaners remain below the level recorded last year, by £2.21 and £1.43 respectively.
Vikki Campbell, Senior Analyst
vikki.Campbell@ahdb.org.uk, 024 7647 8741