Having been stable through the first quarter of the year and then falling into May, EU pig prices have finally gained some upward momentum, according to BPEX.
The organisation’s Pig Market Weekly says that by the week ended June 23, the EU average price had put on nearly £8.60 in three weeks to stand at £150.36 per 100kg. This was the highest price recorded since early December 2012 and was £6 higher than in the equivalent week last year.
The upturn has come as better weather has stimulated some improvement in demand while export markets are performing a little better than earlier in the year. Nevertheless, with the EU economy still weak, the market remains finely balanced and further price increases won’t be automatic and will be partly dependent on weather conditions.
Prices in most major producing member states followed a similar trend to the EU average, with prices rising by between £4.30 and £12.90 per 100kg during the past four weeks. The largest rises were in France and Italy.
Prices in France tend to be more volatile than elsewhere in Europe, while Italian prices have now started to bounce back following sharp falls in the spring due to weak consumer demand.
The key German price matched the EU average by increasing by £8.60 in the latest three weeks. With UK prices rising more slowly than the average, the premium over the EU average had decreased to £13.76 from £19.77 a month earlier.