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Move On Up

Peter CrichtonBy Peter CrichtonDecember 9, 20223 Mins Read
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Although the latest SPP slipped by 0.62p to 199.74p, more positive signals are appearing on both sides of the English Channel with the influential German producer price holding firm at 2.00 EUR as further signs of a recovery in pig prices continue to emerge.

All being well, further improvements in pig prices should soon filter through to the SPP and this is certainly a major step in the right direction as far as sellers are concerned.

UK spot bacon prices have shot up to between 205p/kg and 210p/kg, which is a big step forward.
Despite this, UK weekly contribution prices have in the main remained at last week’s level with Woodheads at 180p/kg, Cranswick at 178p/kg and Karro disappointingly dropping by 2p to 165p/kg.

Cull Sows

It was good to hear of the further improvement in Cull sow prices announced today with cull sow export bidders generally prepared to pay between 85p – 90p/kg at a time when a shortage of number is starting to bite.
It was also good to see that cull sow values have increased by over three times from 30p/kg at the start of the year!

Weaners

With reports of significant falls in feed prices coupled with a better outlook for finished pigs, interest in weaners has increased with buyers emerging from the shadows now that there is a possibility of actually making a profit.

Feed Market Trends

The latest weekly average UK ex farm spot feed wheat price of £226.70/t is now only approximately £6/t higher than at the start of the year.

With global wheat prices flagging feed wheat traded on the futures market at £242/t and for September 2023 £230/t. Feed barley is also reflecting these easier trends with January 2023 deals agreed at £224/t and September2023 at £214/t.

Protein values have on the other hand tended to improve with Hipro soya for January 2023 delivery offered at £514/t compared with £481/t seven days ago. Rapemeal is also firmer with May – July 2023 at £305/t compared with £295/t a week ago.

Reports of Russian wheat still in store and excellent prospects for the Australian harvest are working in pig producers’ favour, although this sector remains volatile both in terms of crops and currency levels.

And finally…

Although there is still a long way to go before pig producers are out of the red, as well as having to face up to soaring energy costs and other expenses, the overall picture is looking better than it has done since pre-Putin days.

But at the same time extra care needs to be given to ensure that the scourge of African Swine Fever which is still a major problem in parts of Europe does not end up on our shores, as this could be the final nail in the coffin for the pig industry.

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Peter Crichton

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