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.