Inside: Pig Market
European pig market stumbles again
European pig prices are in dire straits. The major players in Germany are pushing the market with a so-called 'hauspreis'. Elsewhere in Europe it is also a hit and the spring profit is going up in smoke. When will the price fall end?
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Price pressure is mainly a Northern European issue. In southern countries, such as Italy and Spain, the quotations do not shrink.
A minus 3, minus 6 scenario
The German pig price is expected to collapse again on Wednesday afternoon. The Internet exchange remained stable on Tuesday, just like Friday, at € 1,71 per kilo. This suggests a more stable market. However, based on the current price of the Internet exchange, the German pig price still has a fall ahead of it. That expectation also lives in the market.
We are talking about a '-€0,03/-€0,06 scenario'. German slaughterhouses would drop 3 cents, while the Nordwest commission corrects by 6 cents to €1,64 per kilo. The hauspresen will therefore be abolished. Should this scenario materialize, the German pig market could subsequently stabilize. Sounds can be heard that the pig supply in Germany is drying up, despite the slimmed-down slaughter plans of abattoirs and associated mood-setting.