German pig price is getting ready for a breather

When Chinese demand took hold last year, many exporters seized the momentum and sold off meat stocks from cold stores. The slaughter figures lagged somewhat in the first months of this year and the slaughterhouses were unable to maintain stocks. As a result, stocks are now relatively low. While demand within Europe is excellent. Volumes are also growing well outside Europe, even though prices are under pressure.

Spain benefits from the tourist season
Spain reports a tight pig supply and lagging weights. This ensures that the Spanish pig price, in the ISN price comparison, increases by 6 cents to 1,79 euros. As the tourist season is slowly starting to get underway, the demand for meat will probably remain unabated. It is therefore expected that the Spanish pig price will continue to rise steadily in the coming weeks.

The second highest increase is shared by Germany, France and Belgium. This brings the German pig price to 1,67 euros. The French and Belgians quote 1,74 and 1,61 euros per kilo respectively. The Netherlands experiences a modest plus of 15 cents in week 3 and rises to 1,64 euros. The Danes recorded an increase of 4 cents to 1,63 euros, which is exactly in between. 

Forecast in Germany
While Spanish pig prices have the potential to rise further, pricing in Northwestern Europe is reportedly taking a more muted tone. Today, April 11, the Internet Exchange closed one cent higher to 1,79 euros. This indicates that a price reduction on Wednesday afternoon in Germany will not be an option anyway.

Traditionally, there is no slaughter on Good Friday in Germany. A sideways shift in the Vereinigungspreis, to 1,73 euros, is therefore the most likely scenario. The duration of this expected breathing space will depend largely on which direction the European meat market takes in the further course of April.