GB prices await forecasted rise

GB DEADWEIGHT pig prices have remained relatively static for the past six weeks, but are now forecast to improve due to sharp rises in key EU markets.

The European mainland average staged its biggest price rise since February last week (ending May 28), rising by 5%.

This news will ease the pressure on the GB market, which up to now has been undercut by cheap EU imports.

The GB Euro Deadweight Average Pig Price (DAPP) of 109.64p/kg is still well ahead of the EU mainland average of 87.42p/kg. 

But domestic pig traders will view a further reduction in the gap between these two prices as a positive sign.

UK cull sow quotes have already improved, reflecting rising EU pig meat values, with most cull sow abattoirs lifting their bids by 2-4p/kg to average about 64p/kg.

The recent strength of the Pound against the Euro is negative as far as the GB import/export market is concerned, with the Euro opening at 66.5p on Mon, May 31 compared with 70.5p at the start of the year.
The Meat and Livestock Commission‘s 30kg weaner average lost further ground last week, to end May at £34.50/head ex-farm.

But weaner quotes may soon recover slightly to reflect the prospects of better finished pig prices and lower feed costs in the early autumn. 

Both soya and wheat futures markets have eased, with UK delivered soya meal falling by about £10/t last week, to £183/t on May 25.

Feed wheat prices have also fallen, to £71-£74.25/t for the Sept-Jan period.