EU price slide undercuts UK pigmeat

Pig prices are being undercut by falling EU values, which fell over 4p/kg last week.

The tenth successive weekly fall in the GB Euro Deadweight Adjusted Pig Price brought it to 104.6p, compared with 106p in mid-summer.

Better growth rates throughout the EU have increased supplies at a time when retail demand has remained weak.

A further easing of the value of the euro, which opened at 67.3p on Sept 12, has also given imports a competitive edge.

But consumer demand for pigmeat normally rises in the autumn and could halt the slide.

Competing meats such as lamb and beef are also trading at low levels, putting pigmeat margins under more pressure.

Another sign of the overall weakness of the EU market is reflected in cull sow values.

UK cull sow export abattoirs have dropped their bids by 4–6p/kg over the past two weeks with most sows now traded in the 74–76p/kg range.

Weaner values continue to hold relatively firm in the face of falling finished pig prices.

The Meat and Livestock Commission ex farm 30kg weaner average remains almost unchanged at £34.86/head, but some buyers will be keeping an anxious eye on the finished pig market as they bid for future supplies.

On a positive note, feed wheat prices have remained at low levels with ex farm quotes of circa £60/t and forward prices over the next 3 months showing very little increase.