UK pig prices - week ended 04 June 2016
The EU-spec SPP jumped up by 1.94p to 119.43p/kg in week ended 4 June.
This is the largest single weekly increase since July 2008 and brings the price back up to levels of last Christmas. Although the current quote is 7.31p higher than the low point in mid-March, it remains 12p behind the same week last year. The UK pig price is continuing to be buoyed by the upward moving EU market and strong export demand, particularly from China. UK supplies are also tightening as estimated slaughterings were down 2% from the previous week at 167,000 head. It is worth bearing in mind however that week ended 4 June included a bank holiday which would have affected the slaughter numbers. Another sign that domestic supply and demand fundamentals are balancing out somewhat is a further reduction in the average carcase weight. In week ended 4 June it averaged 82.11kg, down on the previous week and the lowest level seen since December 2015, when pigs are being pulled forward earlier for Christmas.
In week ended 28 May, the EU-spec APP recorded further increases of 1.26p to 121.11p/kg. This is the highest price rise since mid-January. The gap between the APP and SPP has remains under the 4p threshold at 3.6p.
The GB weaner market also recorded increases in week ended 4 June with no major changes in throughput levels in spite of the short week. 30kg weaners recorded a modest increase of 8p to £39.42, the highest quote since the start of January. 7kg weaners showed a greater increase of 71p to £29.80. Likewise, the current quote is the highest since the end of January. Despite the increase week on week, both 30kg and 7kg weaners are down on the same point last year by £5.40 and £3.45 per head respectively.
Millie Askew, Analyst
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