The SPP is continuing to improve, but at more of a trot than a gallop, going up this week by 0.58p to stand at 207.71p.
EU prices are generally on hold after zooming up over the past few months with the German producer price remaining generally firm at 2.28 EUR compared with a miserly 1.29 EUR twelve months ago.
UK weekly contribution prices have mainly stood on with one of the major players fixing their price at 207p/kg and the other contributors expected to be at or around this level too.
Spot bacon pigs are virtually non-existent with many more buyers than sellers and prices in some cases have exceeded 220p/kg, although heavier spot bacon pigs have tended to be in the 215p/kg region according to spec.
Cull Sows
Cull sow prices are continuing to improve and went up a further 3p this week. As a result demand continues to exceed supply with culls trading for export between the 118p and 122p/kg mark and more in places.
The Euro traded at 88.6p compared with 88p a week earlier, which is helping to put up the value of pig meat exports as well as imports.
Weaners
Weaner prices are continuing to reflect falling pig numbers with contract RSPCA Assured 7kg piglets selling in excess of £55/head in some cases.
30kg spot weaners have also been hard to find with some consignments selling at over £80/head and reports of a significant number of rearing/finishing units now standing empty because of the shortage of pigs in the system.
The indications are that this situation could continue in the months ahead as the effects of high sow herd numbers being culled over the past twelve months are really starting to bite.
Feed Market Trends
The UK spot feed wheat weekly average price has dropped by £6/t over the past week and now stands at £218/t ex farm.
This time twelve months ago feed wheat was traded at close to £300/t so the COP/pig price equation is certainly looking much better now but still has some way to go before pig producers are in the black rather than fifty shades of red.
Futures prices are continuing to reflect these bearish trends with feed wheat for April delivery traded at £229/t and September at £228/t. Feed barley deals have been agreed for April and September at £212/t.
Unfortunately, protein values are still remaining high with April Hipro soya at £550/t and June – October is also looking expensive at £500/t. Rapemeal values have eased a touch with April quoted at £347/t.
And finally…
Although according to the NPA pig producers are continuing to lose around £17 per pig produced, the latest feed costs are continuing to move in the right direction. At the time of the Russian invasion of Ukraine wheat prices soared to almost £300/t compared with just under £220/t today.
Providing that the Black Sea Grain Corridor can be kept open this could also put further downward pressure on the cost of producing pig meat throughout the UK and beyond.
However, the cereal and protein markets remain highly volatile and pig producers will still have to keep their fingers tightly crossed that they can soon return to profit and start filling empty bank accounts as the barbeque season approaches and providing pig meat volumes continue to shrink.
p.s. A brief Q & A Session:
Q How do you make a small fortune out of pigs?
A Start with a large fortune!
