Although UK pig market prices remain at generally similar levels, one or two signs may be starting to emerge of slightly more interest in pig meat in the months ahead, but the Christmas/New Year period is still going to be tough for producers.
The latest SPP went down by 0.21p to stand at 200.22p this week. The situation in Europe remains much the same with the latest influential German producer price standing on at 1.9 EUR which translates to 165.5p/kg on this side of the Channel.
Unfortunately, there is still a wide gap between EU and UK prices which enables to pig meat imports to undercut UK producer prices, bearing in mind the much higher production costs which apply as far as the domestic market is concerned.
UK weekly contribution prices remain between 1.73p/kg at the bottom end and 190p/kg at the top, but producers were disappointed to hear that one of the major abattoirs had dropped their weekly price by 5p/kg to 180p/kg in an effort to try and clear pigs as the Christmas season approaches.
Spot bacon buyers still seem to be offered more pigs than the market really wants with some deals being agreed at 185p – 190p/kg with one off loads of spot bacon traded at 180p/kg region and down by around 10p/kg on the week.
Cull Sows
Although cull sow prices in Europe have remained unchanged, a weaker Pound following the announcement of a rise in interest rates and the overall weakness of the UK economy saw the Euro trading at 87.1p.
However, due currency fluctuations cull sow export prices for UK producers rose by 1p/kg to between 66p and 71p/kg.
Weaners
High production costs are continuing to keep finishers very much in the red and although some contract 7kg weaner prices are providing sellers with a better return, this does not apply across the board and spot weaners remain hard to clear.
Traders are however reporting a little more interest from weaner buyers in some sectors possibly reflecting lower pig numbers available going forward.
Feed Market Trends
The feed ingredient markets still remain highly volatile and not for the faint hearted, but one piece of good news is that reports are now indicating that fresh terms for the Ukraine grain corridor to continue operating have been provisionally agreed, whereas earlier in the week Comrade Putin was suggesting it would be closed.
On the whole however feed prices are very much at similar high levels with the latest average weekly UK spot ex farm feed wheat price easing by around £2/t over the past seven days and is now quoted at £256.40/t.
On the futures market feed wheat for December delivery has been traded at £276/t and for September 2023 at £263/t. Feed barley prices saw December deals agreed at £257/t and September 2023 at £248/t.
Protein values remain expensive with December – January 2023 Hipro soya at £530/t and longer months at £465/t for May – October 2023 delivery. Rapemeal remains bullish with December – January 2023 at £366/t and the same price for February – April 2023.
And finally…
Reports indicating that due to a large number of Avian Flu outbreaks poultry will be in short supply and perhaps this will lead to budget conscious consumers showing more interest in pig meat in the lead up to Christmas?
A better demand for pig meat would work wonders for the pig industry, so perhaps UK pig prices could benefit at a time when it is a case of two legs bad but four legs good, we shall see!