Supply pressure squeezes up pigmeat values

RISING EU pigmeat values should help to lift UK pig prices during the key autumn trading period.

Although the GB Euro Deadweight Adjusted Pig Price eased marginally to 105.34p for pigs traded w/c August 29, spot quotes have remained firm.

Despite a short trading week following the bank holiday, most spot buyers are under supplied with pigs and have maintained firm quotes in the 107–109p/kg range.

Barbecue demand has improved with the return of better weather, helping to lift the prices for lighter weight pigs traded in the 110–116p/kg range.

A rise in the value of the euro, which opened on Aug 30 at 68.3p, is keeping up the price of imports at a time when EU pig prices are rising.

Dutch, German and Danish quotes look set to continue rising as retail demand increases after the holiday period.

The current EU mainland average producer pig price is equivalent to 98.88p, but relates to heavier carcass weights. 

In real terms and after allowance for transport costs, there is now little difference between many EU and UK prices.

The cull sow market it also flagging up EU supply shortages and firm manufacturing pigmeat values. Export abattoirs are bidding 76–79p/kg on a flat rate spec.

Weaner values are also firm for the time of year with the Meat and Livestock Commission 30kg average quoted at £35.03/head on an ex farm basis.

With harvest drawing to a close and reports of generally good yields, pig feed prices are likely to remain around the £60-62/t mark for the remainder of the year.