UK pig prices - week ended 5 March 2016
The EU-spec SPP largely stood on for the second consecutive week, falling a very modest 0.05p to 112.12p/kg in the week ending 5 March 2016.
With this being the fourth consecutive week of only moderate declines and reports of the spot price remaining stable, it could now be hoped that the bottom of the market has been reached, especially given the run up to the Easter holiday period.
The average carcase weight fell slightly once again to 83.8kg, down 0.1kg on the previous week. The average probe measurement remained at 11.2mm, the lowest level seen since September 2015. This suggests that finishers are becoming leaner and the colder snap may have led to a slight brake in the growing conditions. Estimated slaughterings rose 3% to 183,000 head for the week ending 5 March 2016, making them 8% up on the same period a year earlier. Reports stated that very few pigs were moved out of contract, suggesting contract demand may be starting to increase slightly.
The EU-spec APP fell by 0.48p to 115.83p/kg for the week ending 27 February 2016, narrowing the gap between the APP and SPP, which remained under 4p. This means that the price remained around 21p lower than a year before, with the market falling at a similar rate this time last year.
Prices in the weaner market showed falls in the week ending 5 March, with 30kg weaners reversing their previous week’s price upturn by falling £1.15 to £36.61 per head and 7kg weaners falling £0.47 to £28.32. This is the fifth consecutive week declines have been recorded in the 7kg weaner price, and infers that confidence still remains low in the longer term finisher market.
Vikki Campbell, Senior Analyst
vikki.Campbell@ahdb.org.uk, 024 7647 8741