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Comment

I Will Survive

Peter CrichtonBy Peter CrichtonJuly 24, 20223 Mins Read
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The SPP went up by another 1.98p to stand at 193.09p which represents an increase of 18.85% over the past twelve months.

EU pig prices have generally held at last week’s levels and the latest German producer price is quoted at 1.85 EUR, which is equivalent to 157p/kg. Average UK carcass weights are also continuing to ease from the recent very high levels with the latest average quoted at 87.88kg.

Most UK weekly contribution prices have also stood on between 173p/kg at the bottom and 190p/kg at the top in most cases. Spot bacon prices have also continued to improve but are still a country mile behind the SPP with spot bacon pigs worth in the 180p/kg region, but regular sellers can in most cases get a bit more than this.

Cull Sows

This market has always provided a useful barometer for European manufacturing grade pig meat values and buyers are reporting that generally prices have stopped falling and that a modest recovery could be on the cards, which was reflected by a 1p/kg increase in the base price of UK cull sows, most of which are now worth between 48p and 52p/kg.

The value of the euro has remained almost unchanged and traded on Friday worth 85.1p, but a weaker pound and a stronger euro would benefit UK pig meat exports prices and put up the cost of imports, which continue to undercut the domestic market by a wide margin.

Weaners

The latest AHDB 7kg ex farm weaner price has finally ben published and indicates much higher price levels with an average of £47.50/head, but in the views of some finishers 7kg piglets purchased at this level will still lose money.

30kg spot weaner buyers remain conspicuous by their absence and with reports of finishers in some cases still losing more than £20 per pig, this is hardly surprising while production costs continue to outstrip pig meat values.

Feed Market Trends

BBC reports are indicating that Turkey has brokered a deal with Russia to unblock exports of grain from Ukraine through the Black Sea, The agreement was signed this afternoon and providing there is no last minute back stabbing, this could have a major effect upon global feed ingredient prices.

At the time of preparing this report, feed wheat futures prices were quoted at £265/t and feed barley at £249/t. The latest UK ex farm spot feed wheat weekly average price is £242/t compared with £250 a week ago.

Proteins prices have eased by £20/t on last week’s value and traded at £476/t for August – October delivery and May – October 2023 has dropped from £445/t to £437/t. Rapemeal futures for August were quoted at £277/t.

And finally, the Ukraine grain deal could signal some major reductions in pig production costs where prices need to rise to at least 230p/kg to put producers back in survival mode…….hope springs eternal!

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Peter Crichton

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