Pig prices at home and in the EU have all remained at very similar levels on the week and can be described as levelling sideways rather than downwards, but still have a long way to go before producers are out of the red.
The latest SPP went up by 0.17p to 200.39p this week and is just managing to stay on the right side of 200p, but in school report terms, could do better. EU pig meat prices are continuing to tread water with the latest German producer price quoted at 1.9 EUR, which works out at 165.5p/kg on this side of the Channel.
As previously reported, however, imports continue to undercut UK pig meat prices and we still have a long way to go before producers are back in the black.
UK weekly contribution prices also remain unchanged between 1.73p/kg at the bottom end and 190p/kg at the top, but hopefully, unlike last week, none will slip any further down in the run up to Christmas.
On a positive note, although the average pig weight is still on the high side, some pig traders are noting that buyers seem to be showing a little more interest in finished pigs, but at this stage have yet to put more money on the table.
The spot bacon market has generally seen base prices in the region of 180p/kg with lighter baconers heading towards 200p/kg but still well behind the SPP.
Cull Sows
Cull sow export values are continuing to reflect the almost universal stand on situation in Europe and export prices have generally remained between 66p and 70p/kg with the Euro trading at 87.2p.
Weaners
Weaner prices have hardly changed although a few more enquiries are being received from buyers looking for 30kg weaners but only at low prices in the main.
Contract weaner values stood on, but if numbers start to tighten up, these could take an upward step in the weeks ahead, we shall see.
Feed Market Trends
Feed prices appear to be easing a touch following the news that Russia plans to continue to allow the Ukraine grain corridor to keep operating, which is better than the alternative when closure was threatened only a few weeks ago, but the whole grain market remains highly volatile, and it is probably a case of taking each day as it comes.
UK ex-farm feed wheat sold on a spot basis has averaged £260.60/t over the past seven days but futures prices are easing a touch with feed wheat for December delivery at £270/t and for September next year at £257/t.
Feed barley values on the futures exchange have fallen to £251/t for December and for the following September at £241/t.
Protein values remain high with Hipro soya for December – January 2023 at £494/t and May – October 2023 deals have been agreed at £448/t and rapemeal for December – January 2023 at £370/t.
And finally…
Despite hopes that further tightening of pig availability could push prices north, unfortunately the latest AHDB reports are indicating that cost of production prices for October still remained high at 232p/kg deadweight which is up on the Q3 averages but lower than the Q2 figure of 240p/kg.
On this basis producers are still losing an average of £28 per bacon pig slaughtered at a time when the SPP is 200p/kg, so unfortunately more pain before we see any significant gain from the producer’s perspective.
So, to summarise, despite a few hopeful signs there is still a long road to travel before producers find life any easier.
