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Two pigmeat pricing positives identified by AHDB Pork

PW ReportersBy PW ReportersFebruary 15, 20161 Min Read
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Indications that EU pigmeat supplies may be beginning to tighten are highlighted in AHDB Pork’s latest review of early year prices, alongside evidence of another potential positive, resulting from the weakening of sterling against the euro.

Noting that EU pig prices have been largely stable over the last few weeks, building on a firming of values at the start of the year, AHDB Pork said that the “slight improvement” seen in recent weeks “must be partly attributable to Private Storage Aid (PSA), which was open for three weeks during January.

With prices also having remained steady since PSA closed, however, AHDB Pork said this suggested a tightening of supplies was beginning to show through.

“Further signs of tightening supplies come from weaner prices, which have increased by 12% since the New Year,” it added.

On the sterling/euro factor, meanwhile, the key point to be made is that the gap between EU and UK prices has now narrowed to below 15p/kg, the tightest it has been since October 2013.

“This could reduce the pressure on the domestic market from imported pork, potentially helping to stabilise the GB price, particularly if the pound continues to weaken,” said AHDB Pork.

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