EU Pig Price Quotations Inconsistent26 March 2014
EU - Now that a new week of slaughter has started, the slaughter pig European market appears to be inconsistent. While prices are under pressure in central Europe, other countries are raising their prices.
Once again, the German quotation serves as a role model, albeit in a negative sense. After a few German slaughter companies paid discounted prices of no more than EUR 1.55 as of Wednesday last week after an unexpectedly high price increase of 13 cents, the quotation was corrected back down by 5 cents on Friday. The Dutch, Belgian and Austrian quotations also sounded the retreat.
On the other hand, France and Denmark continued the previous week’s price increase, thus relegating Germany from rank 2 to 4 within the five major European pig-keeping countries’ price structure. In Spain as well, slaughter pig prices finally went up again. On the one hand, the Spanish appear to be disappointed about the fact that no agreement seems to be within reach at present as to the Russian ban on pork imports.
However, on the Asian market, Spain faces severe competition with the USA, where the spread of PEDV is causing considerable setbacks in stock sizes, followed by an increasing price level. This makes it clear that first shifting has already occurred in commodity flows after the Russian market was closed for pork to enter from the EU.
Trend for the German market: This week, the slaughter pig market is being described as quite well-balanced by market participants. The quantities of pigs for slaughter are being sold smoothly, with opportunities emerging for more pigs to be sold. From this latest point of view, prices are expected to remain fixed at least.
Prices in Euros (€)
1corrected quotation: The official Quotations of the different countries are corrected, so that each quotation has the same base (conditions).
base: 56 per cent lean meat; farm-gate-price; 79 per cent killing out percentage, without value-added-tax (VAT)