The SPP has continued to rise putting on another 2.26p to hit a record 204.78p with hopefully more of the same in the weeks ahead.
The pig shortage has also been keenly felt in Europe and the German producer price went up a remarkable 8 Cents and now stands at €2.08/kg, which is equivalent to 186p/kg in real money.
Pig supplies have gone from feast to famine as the effects of herd clearances a year ago continue to bite and, at the same time, productivity levels have been lower than they should be, hitting pig availably going forwards.
Because of the shortage of pigs, spot baconers are extremely thin on the ground. As a result, the general trend seemed to be that regular spot sellers could agree deals within a wide range between the 205p – 215p, well ahead of the SPP and weekly contribution prices.
Cull Sows
Cull sow prices are continuing to reflect bullish EU pig meat demand and rose by another 5p/kg with most UK producers able to sell their culls between 96p and 100p/kg compared with the miserable cull sow average of around 20p/kg twelve months ago, so in round terms cull sow prices have gone up approximately five-fold.
Sharp falls in the value of the Pound have also put a smile on producers faces with the Euro up by almost 2p to 89.24p on Friday.
Weaners
Weaner prices continue to soar with reports of RSPCA Assured 7kg weaners well ahead of £50/head. Demand for spot 30kg weaners also continues to exceed supply with very few available as numbers continue to dwindle and shrewd sellers have been able to get £75/head and more in places.
Feed Market Trends
Grain and commodity prices remain firm with the latest UK weekly average spot feed wheat price going up by £6/t from £213.40/t to £219.40/t ex farm. This pattern has also been reflected on the futures exchanges with feed wheat for March quote at £233/t. Feed barley has however eased a touch and traded at £214/t for March delivery.
Protein prices have lifted over the past seven days with Hipro soya for June – October at £497/t and rapemeal for March – April at £360/t.
And finally…
Before producers get too carried away with the thought of better prices heading in their direction, many are still nursing their financial wounds caused by over a year of disastrous prices.
There is a deep hole to fill before producers can get out of the red and into the black again and it really will be a case of survival of the fittest in the months ahead, but it looks as though the pig shortage throughout the UK and EU will continue for the time being….we shall see!
