UK PIG PRICES - WEEK ENDED 12 MARCH 2016
The EU-spec SPP saw a modest increase of 0.25p to 112.37p/kg in the week ending 12 March.
This is the first increase recorded for 17 weeks and may be the first sign that the bottom of the market has now been reached. A better supply and demand balance is contributing to this development. Spot prices remain stable, which is also encouraging in the run up to the Easter holiday period.
The average carcase weight fell again for the fourth consecutive week, down 0.6kg to 83.1kg on the previous week, while the average probe measurement increased slightly to 11.3mm. This suggests that finished pigs may be coming forward to market a little earlier to rationalise herd sizes slightly. Estimated slaughterings decreased 4% to 176,000 for the week ending 12 March but were 4% up on the same week last year. This may be a further indication that supplies are beginning to tighten, and in turn further stimulate the price.
The EU-spec APP fell by 0.14p to 115.69p/kg for the week ending 5 March 2016, narrowing the gap further between the SPP and APP although still it resides under the 4p threshold. The current quote is nearly 21p behind the same point last year, with the gap tightening slightly as prices were falling at a faster rate in 2015.
Prices in the 30kg weaner market largely stood on from the previous week for week ending 12 March, falling only slightly by £0.07 to £36.54. 7kg weaners recorded a price increase of £1.04 to £29.36 for the same week the first rise since the beginning of February. Throughputs of 30kg and 7kg weaners were both reported to be up. These price movements continue to reflect the uncertain outlook in the finisher market.
Vikki Campbell, Senior Analyst
vikki.Campbell@ahdb.org.uk, 024 7647 8741