In line with seasonal trends pig prices have hit a plateau, writes FW commentator, Peter Crichton.
The GB Euro Deadweight Adjusted Pig Price remained unchanged in the week ending 1 July at 152.34p/kg and the weekly prices announced by Tulip, Cranswick, Vion and Woodheads all remained at similar levels within the 151-155p/kg range.
As a result, spot bacon was traded within a fairly narrow 153-157p/kg band, according to specification, with light pigs earning modest premiums of 4-6p/kg above this.
Looking ahead however, signs are emerging of a slight reduction in pig supply numbers and the DAPP sample weight has also dropped, which could help to maintain prices at a time of year when they often slide.
Cull sow prices have benefited from the relative strength of the Euro which closed on Friday (1 July) worth 90.3p and saw export bidders prepared to pay between 100-104p/kg for culls at a time when numbers are starting to dwindle.
Weaner producers have yet to benefit from recent falls in cereal prices but with wheat futures now trading at £12-15/t less than two weeks ago, cheaper compound feeds could help to improve demand in this sector. The latest AHDB 30kg ex-farm average of £45.80/head still remains significantly below cost of production.