Pig Market Update 23rd November
There was no change in Irish pig price last Friday. Farmers are receiving quotes ranging from €2.06c/kg up to €2.16/kg from processing plants. Irish family farms are in their 15th consecutive month of losses, still losing circa €9/pig sold.
Current Irish pig price unchanged at 210c/kg – our break-even is 220c/kg (€9/pig loss, €13k/month, 15th consecutive month of losses). The increase in UK & German sow prices this week indicate that the downward pressure on the pig market may have stabilised. EU market is still waiting on high Chinese demand – Chinese domestic pig price is currently up 125% since March 22 (27 vs 12 Yuan/kg).
Matif Dec. Delivery: Prices steady on the extension of the Ukraine grain corridor until end of March.
Exports of the recent bumper Russian wheat crop (91MMT vs 78MMT 2021) is in full flow which is putting downward pressure on international prices. Concern that only 50% of Ukraine maize harvested (12MT) amid concerns about drying ability in light of energy restrictions. Winter cereal planting across Europe nearing completion in excellent conditions – warm with plenty of moisture. UK estimates their highest barley area planted in 20 years.
Australian wheat crop yield is still expected very high at 32-34 MMT but due to heavy rain/flooding there are concerns about quality.
The average European pig price for Grade E carcass price is €1.98/kg for week 45. German sow price and UK sow price both increased by 6cent which is a positive indication.