UK pig prices - week ended 30 April 2016
The EU-spec SPP increased for the fourth consecutive week, in week ending 30 April 2016, by 0.30p to 113.79p/kg.
Although, once again, it was only a modest increase, it is another week of positive movement and sheds a glimmer of light that the bottom of the market has been reached and prices may start to move northwards again. The forthcoming bank holiday seemed to have little impact on the price, with no evidence of pigs being brought forward a week to compensate for the shorter working week following. The SPP is still over 18p less than at the same period a year earlier, although the gap is starting to narrow slightly.
The average carcase weight decreased again on the week earlier, by 0.63kg to 82.82kg. This is the first time this year that the average carcase weight has fallen below 83kg. The unseasonably inclement and cool weather recently may have adversely affected growing conditions. Estimated slaughterings fell 4% on the week earlier to 169,000 head, but were still 3% up versus the same period last year.
The EU-spec APP also increased in the week ending 23 April 2016, modestly up 0.16p to 116.97p/kg. The gap between the APP and SPP has contracted further from the week earlier to under 3.5p, which is almost 1p less than the same period last year. This may suggest that fewer premium pigs are coming forwards, or those that are have decreased in value at a greater rate than standard pigs.
The 30kg weaners increased again in price in week ending 30 April 2016, by £1.84 to £39.19. However, 7kg weaners fell in price over the same period by £1.06 to £28.52 per head. 7kg weaner prices continue to fluctuate, indicating uncertainty in the long-term market. However, there may be increasing confidence in the 30kg weaner market, now showing 2 weeks of relatively strong growth.
Vikki Campbell, Senior Analyst
vikki.Campbell@ahdb.org.uk, 024 7647 8741