The SPP continues to rise and went up by another 1.58p to stand at a new peak of 195.86p.
EU pig meat prices are still at low levels with the influential German producer price remaining unchanged at €1.85 (155p/kg), with the result that pig meat imports continue to undercut the home market by a country mile.
However, one plus point is that UK carcass weights have dropped to 87.69kg indicating that there is very little in the way of a backlog of overweight pig left in the system.
UK weekly contribution prices are largely unchanged between 173p/kg and 190p/kg and are in some cases falling well behind the SPP to the tune of 13p/kg, which in school report terms means could do better.
Spot bacon demand is little changed on the week with most buyers already having enough pigs to meet demand and compete with imports, but one-off spot bacon deals have generally been agreed in the 180p–185p/kg region according to spec.
With the Euro currently trading almost unchanged on the week at 84.1p and static German pig meat prices, most UK cull sow deals have been agreed between 47p–51p/kg.
But when the pig shortage really begins to bite, improving cull sow values could be the first sign of better times to come.
Although weaner values continue to rise due to the increasing value of the SPP, very high finished pig production costs continue to discourage buyers from filing their units.
Unless clearer signs soon emerge that feed prices and pig values are going in the right direction, non-contract weaners could remain hard to sell.
Feed Market Trends
News of the possible expansion of Ukraine grain exports has helped to push prices down but, in many cases, nowhere near low enough to put producers back in the black.
Feed wheat futures market prices for September delivery are quoted at £261/t with twelve month forward prices slipping to £241/t.
The latest UK ex farm spot feed wheat weekly average price is £241/t compared with £246.70 a week ago. Feed barley for September delivery is quoted at £246/t and for 2023 at £226/t.
Protein values are also easing with Hipro soya traded at £479/t for September delivery and £438/t for May-October 2023.
Rapemeal prices are largely unchanged with September at £299/t and November-January 2023 a touch dearer at £314/t.
And finally, a massive shortage of pigs backed up by recent figures is forecast in the autumn and many more herds to be culled, with a huge decline in slaughter pig availability this autumn following a crash in the monthly numbers of weaned pigs believed to be over 300,00 head in July and 298,000 head in August.
On this basis, it looks as though pigs in blankets will be in short supply and valuable at Christmas time!