Stiff pig market is full of supply

The chance of a cut for the German pig price is getting closer by the week. According to some, Wednesday was the last time the pig price was set at €1,70 per kilo. Slaughterhouse Tönnies threatens with reductions of at least €0,05. Of course, some mood-making has been factored into this, but a reduction of €0,02 is definitely a realistic scenario. Others would not be surprised at €0,05. Still others think the market can remain unchanged as long as no one takes the first step.

In any case, the sentiment is not very good. It results in a tense and searching market with too many heavy pigs. Where the pigs come from remains a mystery to many. Here and there, pre-sorting is already being done for a reduction by giving up extra pigs.

German pigs stay in the Netherlands
Sales in the Netherlands in particular are dire. According to some traders, this is because the large German slaughterhouses have negatively adjusted the payout price for boar pigs. As a result, more pigs would remain in the Netherlands. The sale of deposits to Germany, as long as there are not too many, is progressing reasonably well. The Internet exchange remained unchanged on Friday at €1,74 per kilo. 

Meat market under pressure
It is the deteriorating currencies that are hindering the sale of pork outside Europe and Great Britain. In addition, China is also absorbing less volume than last year. The European meat market is therefore fuller. According to slaughterhouses, meat prices are at odds. Especially because pig prices in Southern Europe are shrinking by the week.

Slaughterhouses are not positive about the sale of hams, bellies and the fore-end. The meat-purchasing parties learn that the pig price is under pressure and are voting for slaughterhouses. Both the pig and meat markets are like loose sand.

In addition, the American pig price is under pressure. The Iowa/Minnesota quote, which reflects the price of the heart of the US hog industry, stood at $1,95 per pound this summer. By the start of the autumn, more than €0,50 of this had evaporated. In addition, slaughterhouses in the US are slaughtering in abundance, with more than 2,4 million slaughters per week. It does not make the sale of European pork on the world market any easier.

What does the Scholarship Prize do?
Despite the fact that a handful of traders are arguing for a reduction, the DCA stock price for live pigs still stands at €1,62 per kilo. The price of live pigs remains at €1,28 per kilo. At the beginning of August, the Stock Price started an upward trend, which was only partly followed by slaughterhouses. This move is now putting additional pressure on the price. Nevertheless, the opinions weigh more heavily for unchanged than for a reduction. That would completely open the way for lower quotations in the Netherlands and Germany.