World Cup fever over for pigmeat prices?

There are fears the recent bullish market for UK pigmeat may be weakening as the holiday period approaches and supplies tighten.

Dwindling slaughter numbers show spot pigs have been scarce and as a result spot bacon quotes peaked at up to 115p/kg for deliveries in the week commencing 3 July.

The latest Deadweight Adjusted Pig Price of 105.6p marks its highest point this year.

But signals from the spot market suggesting that a price correction is on the cards.

Extra consumption generated by the World Cup appears to be drawing to a close and as the holiday season approaches, most EU pigmeat prices have eased by 2 – 3% over the past week.

But pig numbers are still tight and traders suggest that although prices will ease, summer price crashes seen in recent years are unlikely.

Rather than chase shrinking numbers, some processors have chosen to buy imported carcasses.

The cull sow market has reflected easing EU pigmeat values with exporters dropping prices by 2 – 4p/kg. 

Cull sow quotes for the week commencing 3 July were generally in the 76 – 81p range, depending on specification.

The euro has maintained its recent strength and opened on Monday at 69p, compared with 67.5p in July 2005.