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Prices rising as demand holds up and supplies remain tight

Alistair DriverBy Alistair DriverMay 17, 20212 Mins Read
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Demand has held up well despite the inclement weather dampening outdoor dining opportunities, while supplies remain tight, underpinning rising pig prices. 

“Most processors remained focussed on keeping throughputs as high as supplies would allow,” Thames Valley Cambac (TVC) said in its latest weekly market update.

“These supplies continued to be tight with average weights trending lower as well. Prices were given a boost by another 1.31p rise in the SPP, and weekly contract contributions were up another 3p.

“Prices improved in the fresh meat market as well, but there were signs of resistance in some quarters to project these increases onto the consumer. However, with the price of beef and lamb at the moment, there must be an opportunity to improve pork values on shelf.”

The cull sow market was well supplied, and prices stood on. In Europe, most quoted markets saw price increases – Germany and Denmark added 4 eurocents, and Belgium added 7 eurocents.

However price quotes in sterling were compromised by a weaker Euro that ended the week down 0.73p at 86.08p.

The weaner market is increasingly dominated by production costs, whether feed and/or straw. This is curtailing demand for all classes of stock, with some fatteners now sitting out of the market until harvest. The AHDB weighted average 30kg store pig price was £54.06 but there was no 7kg weaner quote.

European Prices (p/kg.dwt) w/c 16/05/21   Movement on last week

GB SPP                                  148.75             + 1.31

Tribune Spot Bacon                151.96             + 1.71

European Av.                          138.38             + 1.23

Belgium                                   111.74             + 5.74

Denmark                                 130.81             + 2.42

France                                     159.18             – 1.34

Germany                                 125.68             + 2.41

Ireland                                     147.55             – 1.25

Holland                                    127.14             – 0.21

Spain                                       166.57             + 0.85

(Ref Weekly Tribune)

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Alistair Driver

Editor Pig World, group editor Agronomist and Arable Farmer and Farm Contractor. National Pig Association webmaster. Former political editor at Farmers Guardian. Occasional media pundit. Brought up on a Leicestershire farm. Works from a shed in his Oxfordshire garden.

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