After a significant period of improving prices, the SPP is unfortunately on the turn dropping by 0.21p to stand at 200.01p.
However, this is by no means as bad as the falls which European producers are now experiencing with the influential German producer price dipping sharply by 10 Cents to 2.00 EUR, which converts to 175p/kg in our money.
This is still way below UK COP levels, which according to the AHDB are over 230p/kg and pig producers will continue to clock up crippling financial returns putting more of them closer to the edge financially, not to mention the negative effect it is having on the whole UK pig meat supply chain.
The situation has not improved as far as UK weekly contribution prices are concerned with the three big players holding their prices at least week’s levels of 1.73p/kg at the bottom end and 190p/kg at the top.
Spot demand remains extremely selective with fresh meat abattoirs commenting on further sharp falls in pig meat consumption due to cheaper imports.
Although one or two spot bacon quotes for lighter weighs are still nudging around the 200p/kg mark, heavier weights and one off consignments are still in the doldrums with bid prices where space permits at not much more than 185p/kg.
Cull Sows
A weaker Euro which traded at 87.67p on Friday has resulted in export buyers trimming their quotes by around 2p/kg to 74p – 78p/kg.
Weaners
Although no AHDB average prices are available, trade sources are indicating that a number of weaner producers have had to trim their prices to try and encourage weaner buyers to keep taking pigs with some buyers reluctant to take the risk of further losses as the year end approaches.
Feed Market Trends
Unfortunately pig feed prices continue to steam ahead with the latest weekly UK spot ex farm feed wheat average up from £267.80/t to £274.10/t.
The effects of Putin’s sabre rattling following on from the recent so called referendum in four Ukraine States signs are emerging and Russia could close the Ukraine grain export corridor putting further upward pressure on the cereal market.
Feed wheat futures deals have been agreed at £291/t for October delivery and for September 2023 £277/t. Feed barley prices also continue to rise with deals agreed for October at £266/t and September 2023 at £262/t.
Protein values have levelled to some extent but are still completely unsustainable as far as pig producers are concerned with Hipro soya deals agreed for October at £535/t and £491/t for May – October 2023.
And finally, abattoir operating costs are still going through the roof and unfortunately on the pass back principle these extra charges will end up being paid by the producers themselves rather than being absorbed by the whole of the supply chain. All in all today has been another Black Friday as far as the pig industry is concerned
