Hopes of better store pig prices

By Simon Wragg

STORE pig values have fallen over the past month, but that could change if improvements in the finished price are sustained.

Prices for 30kg stores peaked in mid-April at almost 35 a head in the north following steady improvements throughout the spring.

That at least gave producers a return after costs for the first time in over a year, says the Meat & Livestock Commission.

But stores values fell back to just 31.50 a head as finished pig prices wavered in early May and processors froze supply contract payments.

However, these have been revised upwards in line with the spot market; a move helped by a weakening of sterling and better prices in other EU countries.

Auctioneers, including Mike Carter of Northampton market, now hope store values will recover some of the price gap.

Current prices put this weeks entry at 33 a head.

Direct marketing groups have similar hopes.

Allied Livestock marketings Chris Fox says the slump in store pigs in late May was hindered by the run of bank holidays and shorter working weeks.

“Now we are clear of that, prices will improve.”

Store numbers remain tight adding to concern that a number of specialist producers have been forced out of the sector during the crisis.

However, Mr Fox adds some producers will have switched to finishing stock rather than accepting the 5/head margin being made on weaner sales.

But it is unlikely producers will want to pay much more for stores in the next few weeks.

A 30kg store bought now will have reached its slaughter weight by mid-August when the market for finished stock can be particularly fickle.

“It may pay some to hold of for a week or two,” he adds.