European pig prices show stabilization

At the end of July, the European reference price fell by €0,50 per 100 kilos, but in the following week prices rose by €1,36 per 100 kilos. This resulted in the European reference price being €171,12 per 100 kilos. 

That price is €6 per 100 kilos lower than 7 weeks ago, when a peak was achieved. However, the price is still €7 per 100 kilos higher than last year in this period. 

Supply and demand in balance
The minimal price movements of the past period (4 weeks before August 20) suggest that a balance has been found between the number of pigs supplied and the demand for those pigs. Moreover, European pig exports to Asian markets can easily keep up with last year's levels.

If pork demand declines in the coming months and supplies do not recover further, the potential for further price increases may be limited. 

Stability in most countries
Pig prices in Spain, Denmark and The Netherlands remained largely unchanged in the above period. In Germany the price did increase somewhat, but very slowly (increase of €1,54 per 100 kilos in 4 weeks). In contrast, prices in France fell by €2 per 100 kilos.  

The increase in the European reference price for pigs mainly increased due to the enormous increase in the Italian reference price. It showed a plus of no less than €38 per 100 kilos. 

British pound has an effect
The British price is also relatively stable in the period mentioned. The final quotation was €180,71 per 100 kilos, which means the price shows a decrease of €3 per 100 kilos. A further weakening of the British pound could cause prices to fall further in the near future. 
The European reference price for pigs over the months. 
Source: AHDB Pork