Spot bacon prices sizzle - Farmers Weekly

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Spot bacon prices sizzle

Improving EU prices and better demand are signalling firm pigmeat prices as the year draws to a close.

Although the GB Euro Deadweight Adjusted Pig Price only moved ahead marginally to 101.65p, spot prices saw further increases with spot bacon traded at an average of 104.5p/kg.

This compares with 100.5p/kg a year ago – worth an extra £3 per pig.

Despite extra pigmeat supplies being drawn forward due to abattoir closures over the Christmas period, demand is still running slightly ahead of supply.

EU traders are also reporting low stocks in cold stores and generally tight supplies.

Demand for lighter weight pigs throughout the UK has also improved with firmer prices for cutters traded in the 109–113p/kg bracket.

Cull sow values have also held at recent firm levels with base prices in the 76–78p/kg range.

But most EU cull sow meat processors are reported to have adequate forward stock to meet demand until after Christmas.

The relative stability of the euro, which opened on Monday (Nov 28) at 68.4p, will also help to maintain the import/export balance, providing there is no unforeseen collapse.

Weaner values have also remained at similar levels with the Meat and Livestock Commission ex farm 30kg average quoted at £33.53/head, which is little more than cost of production.

Spot bacon prices sizzle

SPOT PIGMEAT prices for deliveries in the week commencing Mar 7 have continued to climb.

Most GB spot baconers were selling at 109–112p/kg/deadweight, with lighter weights only worth a modest 2–4p/kg above this.

In contrast with lively spot quotes, the GB Euro Deadweight Adjusted Pig Price (DAPP) only moved slightly ahead to stand at 102.29p/kg.

EU mainland prices have remained largely static on an average of 95p/kg, creating a vacuum between UK prices that threatens to suck in imports from the Continent.

There was some good news in the EU report Prospects for Agricultural Markets and Incomes 2004 – 2011, which flagged up better levels of pigmeat consumption. 

In the ten new member states pork consumption is predicted to grow by over 10% as economic and living standards improve.

At the same time, all EU producers are benefiting from lower grain prices with UK feed wheat costing £65/t ex farm compared with £91/t a year ago.

Cull sows continue to trade at high levels with export abattoir quotes approaching 90p/kg.

But the relatively strong pound is keeping a lid on cull sow export values. The euro has remained roughly unchanged at 68.8p.

The weaner market remains under-supplied due to infertility and herd health problems last summer and a reduction in the availability of spot weaners.

The Meat and Livestock Commission 30kg weaner average of £34/head is now £4 higher than at the start of the year.

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