Inside: Pigs & Feed

May is favorable for slaughterhouses

12 May 2017 - Wouter Baan

The pig market is in the midst of a stable period that even feels somewhat dull. Pig prices in Europe are waiting for impulses to take another step, but they are lacking. In fact, the market is even trending downwards.

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So far, European slaughterhouses are using the month of May to regroup. In April the quotations were constantly on the rise. That has put pressure on margins here and there. In France (Brittany) the price has already fallen by 5 cents to 1,49 euros. French slaughterhouses apparently have more difficulty translating pork prices to the meat market than the Netherlands and Germany, where there is less pressure.

1,83

euro

notes the stable Internet stock exchange

The month of May is also ideal for setting a price ceiling. This is due to the cancellation of several slaughter days. The Internet Exchange in Germany does not actually choose a direction, which means that the German pig price is not stimulated. Small pluses and minuses alternate, on balance the quotation has been stuck around 1,83 euros for several trading days.

Slaughter figures vary
The slaughter figures in Germany show a distorted picture. In week 17, the slaughterhouses again processed more than one million pigs, due to a pent-up supply due to Easter. In week 18 the counter recorded 874.864 pigs. Due to the celebration of Labor Day, Monday (May 1) was canceled. The weights are stable every week, well over 97 kilos.

Sow prices are crumbling, meat market under pressure
There is more price commotion on the sow market, but in a negative sense. The leading quotation of Tönnies fell by 5 cents this week to 1,34 euros. Sow prices in the Netherlands are also taking a step back. The sow price is historically high and is now experiencing headwind from the meat market.

The pig's front part looks down 

The meat market is under pressure. Italy is less active in the market and wants to see a price reduction of up to a penny for some parts. This week, the hams, bellies and backs are traded virtually unchanged. The shoulders write a minus of 3 cents. The forepart of the pig in particular is putting some pressure on the meat market. Slaughterhouses are still recording in the safe zones, but there is no room for higher purchasing prices at the moment. This is partly due to disappointing weather. There is hardly any BBQ weather.

Sort in advance on Ascension Day
Traders report ample supply for next week (week 20). With Ascension Day approaching, pigs are brought forward here and there. Nevertheless, the offer can be placed. 'Better to keep peace than to force it unwisely' is the common thought. That is why the DCA Exchange Price 2.0 remains unchanged at 1,71 euros for slaughtered pigs. The price for live pigs is again 1,35 euros.

The pig market will probably be hampered by broken working weeks until June. The market experiences fewer delays in June. When temperatures rise, increases are almost certainly feasible. 

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