Inside: Pig Market
Will peace return to the European pig market?
The pig supply in Europe is still extensive. In Southern Europe this leads to lower pig prices. Northwestern Europe has more stability. Europe is now more favorably priced on the world market.
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Pig prices in Northwestern Europe have been supported this week by a bi-weekly quotation of the German pig price. In the ISN price comparison, Germany, the Netherlands and Belgium show no change compared to last week. The price also remains stable in Denmark at €2 per kilo.
This is not the case in Southern Europe. In Spain, the pig price drops by €0,02 to €1,41 per kilo. A similar reduction is visible on the French market with a quotation of €1,38 per kilo. Due to the cooler temperatures in Spain, the fattening pigs grow faster, which increases the supply slightly.
More favorable competitive position
On the world market, Europe is priced more favorably than a few weeks ago. According to the European Commission, the average pig price in Europe is currently €1,48 per kilo, compared to €1,24 (United States), €1,22 (Brazil) and €0,94 (Canada). Also the euro has decreased in value. Meat exporters notice this on the meat market, although the sales to China accompanied by difficulty.
Whether the better export position is enough to break the price fall will become clear on Wednesday afternoon. Based on the Internet Exchange, the German pig price can be expected to remain stable at €1,45 per kilo. At the auction, 7 of the 19 lots were sold for an average of €1,46 per kilo.
Although this is a decrease of €0,01, the indicator is still slightly above the German pig price. German slaughterhouses speak of an improved demand on the meat market, but this is offset by ample supply.