UK pig prices - week ended 15 October 2016
For the week ended 15 October, the EU-spec SPP rose yet again, increasing by 1.18p to 145.08p/kg.
This means pig prices have now been rising for 28 consecutive weeks, the longest period of successive price rises in records back to at least 1995. This current price stands at over 17p more than at the same point last year and represents a level not seen since November 2014. As has been mentioned numerous times before, the strong demand for pork from China, coupled to the weakening pound and a tightening of supplies, has enabled this remarkably prolonged period of sustained price rises to occur
Estimated slaughterings declined on the previous week by 2%, to sit at 174,500 head. This figure is also 2% below the levels seen for the same week a year earlier, likely confirming supplies remain relatively tight at present. Average carcase weights have remained relatively static for a number of weeks, standing at 82.58kg for the latest week. This is marginally higher than the previous week (+0.14kg), and the same period a year earlier (+0.05kg).
During the week ended 8 October the EU-spec APP also rose, to 146.49p/kg, an increase of 1.84p on the previous week. This brings takes the APP back to levels last seen in December 2014. Consequentially, the gap between the APP and the SPP widened by 0.17p, to 2.59p, its highest level since early July.
In contrast to finished pigs, both categories of weaner showed marginal price declines for the week ended 15 October. The 30kg weaner price decreased by 6p to £49.77/head, while the 7kg weaner category saw an even smaller 3p decline to £36.37. Nonetheless, both the 7kg and 30kg weaner prices remain comfortably above last year’s levels, by £3.52 and £6.52 respectively. It is important to note the price declines seen this week are small compared to the net increases seen during October so far. Potentially, however, this week’s prices may reflect increasing caution in the market, for 7kg weaners in particular, which will not be finished until the traditionally more difficult post-Christmas period.
Bethan Wilkins, Trainee Analyst
email@example.com, 024 7647 8757