SPP eases again
In the week ended 8 December, despite stable throughputs the EU-spec SPP fell by 0.73p compared to the previous week, to 142.56p/kg.
This represents the largest weekly price decline for five weeks, with the current quote almost 9p behind the same week in 2017. While the gap between the two years had been narrowing since the autumn, in this latest week the SPP actually fell at a faster rate than last year.
Estimated slaughtering for the week totalled 190,800 head, virtually on par with the previous week but still 4,500 head higher than a year earlier. This is the second consecutive week in which slaughter has been above 2017 levels. The average SPP carcase weight fell by 270g to 83.91kg, the lowest level since mid-October, suggesting fewer pigs are now being rolled back. Nonetheless, average weights continue to be over a kilo heavier than the corresponding week in 2017, suggesting lower numbers have been pulled forward than last year. This may well push up supplies in the New Year. The average probe measurement remained unchanged at 11.3mm.
Conversely, the EU-spec APP was broadly stable, at 147.71p/kg during the week ended 1 December (+0.02p week-on-week). This leaves the current quote over 7.5p behind the same week in 2017. The gap between the APP and SPP in the same week rose to 4.42p, as the SPP recorded a decline.
Both categories of weaner price declined in the week ended 8 December. The 30kg weaner price fell to £43.24/head, down 31p compared to the previous week. This decline meant prices were the lowest they’ve been since July 2016. The 7kg weaner price recorded a drop of £2.53 to £33.97/head. Both the 30kg and 7kg prices continue to run behind levels recorded in 2017, currently down by around £13 and £7 respectively. Supplies are reported to be ample, perhaps exaggerated by limited finishing space due to previous delays in moving pigs off farm. Demand is also reported to be very poor, and hence market conditions have been difficult.
Bethan Wilkins, Analyst
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