Stronger demand, higher EU prices ahead

By Peter Crichton

DESPITE falling numbers of pigs on offer, spot prices have struggled to remain at stand-on levels this week.

UK spot pigs are selling at 96-100p/kg for baconers, with lighter weights generally between 100p-106p/kg for speciality porkers.

The recent Malton decision to cut kill levels put a brake on the market but, once the holiday period is over in the UK and Europe, demand is forecast to improve.

Analysts feel that it will be mid-September before the EU market returns to better trading levels and this is reflected by the AEX Dutch futures which are in the 97-93p/kg range for September/October.

EU pig prices are now at similar levels to those in the UK, which might help reduce the volume of “cheap” imports.

Dutch imports fell last week to 2500t, but this is still equivalent to 36,000 live UK pigs per week.

Demand for weaners remains affected by licensing restrictions but, in regions where movements are possible, 30kg weaners are worth 36-40. 7kg pigs are still trading in the 22-24.50 range.