It's Getting Better
16th Feb 2018 / By Peter Crichton
Despite the SPP dropping by 0.88p to 145.92p, signs are emerging of better pig prices, with the influential German producer price up by another 6 cents to stand at 1.46 EUR. This is equivalent to 130p/kg in our money and, for the record, this price has now improved by a total of 16 cents over the last 3 weeks.
Other European prices are all heading north, but this is yet to filter through to the UK market.
Most weekly contribution prices are expected to hold at stand on levels, but should rise in the weeks ahead, although fresh meat wholesalers are still reporting indifferent demand with competition from imported cuts and joints across the board.
Spot bacon prices for regular sellers are generally within the 130p-135p range.
Cull sow prices also continue to improve, reflecting better EU wide demand for pig meat with most export buyers lifting their bids by around 3p and 70p/kg is now the bench mark.
The value of the Euro has also remained firm with trading on Friday worth 88.9p.
With the hopes of better finishing prices in the spring/summer, some weaner buyers are showing more interest and, coupled with high mortality and low conception rates in some herds, the signs are that weaner numbers could tighten in the weeks ahead.
The latest 30kg ex-farm AHDB average is £52.96 down by 0.26p and the 7kg average is £38.13, up by 0.81p.
Global grain markets have remained at similar levels with something of a sideways drift and the latest UK feed wheat future prices are quoted at £137/t for March, £141.20/t for July, rising to £146.75/t for March 2019.
And finally, good news on the export front with reports that UK pork exports have increased by 4.8% in 2017 and, although there was a fall in the EU exports to China, signs are emerging that Chinese demand could increase in the year ahead and hopefully a case of more sweet than sour.