Pig price up again, but 'headwinds starting to develop'

GB pig prices increased by 1.39p last week, as the EU-spec SPP reached 158.96p/kg, with all but the heaviest pricing band showing increases.

The SPP remain 6.5p down on last year, but nearly 8p up on the five-year average. 

However, AHDB has warned that 'some headwinds may be starting to develop' as EU prices continue toi fall alongside reports of logistical difficulties in the supply chain, with a shortage of HGV drivers in particular. 

Estimated slaughter in the week was 173,500 head, 7,000 lower than in the previous week but comparable with the same week a year ago. Carcase weights fell further, by just over 200g to 86.04kg.

The EU-spec APP rose by 1.31p in the week ending July 26, to 161.98p/kg, with the gap between it and the SPP widening to 4.41p.

No 30kg weaner price was available in the week ending July 3, although the price of 7kg weaners was £38.93/head, 17p up the week before.

To see the weekly price graphs, click here

Feed cost relief?

Costs of production remain high, after averaging a record 174p/kg during the first quarter of this year. 

However, there appears some light at the end of the tunnel as more favourable weather in June ease new-crop supply concerns saw a welcome decline in global grain markets, according to AHDB analyst Megan Hesketh.

Spot UK ex-farm feed wheat prices lost more ground than barley prices, reflecting tight UK barley availability as we approach the end of the season.

Rains and cooler temperatures across the US maize belt eased supply worries in June, pressuring feed grain prices, she added. 

You can read more on the feed market trends HERE