Higher pig price seems out of the question

The German pig price remained unchanged again in week 26 at €1,44 per kilo. Dutch slaughterhouses also left their quotations unchanged for the fifth week in a row. Although slaughterhouses show demand, this does not result in higher quotations. The Internet Exchange increased on Friday, June 29, by €0,01 to €1,51 per kilo, with almost all parties making a deduction. However, on balance the indicator is €0,01 lower than at the start of the week. This is due to an earlier loss (Tuesday, June 26) of €0,02 per kilo.

Although the supply is described as tight, 305.000 pigs were slaughtered in the Netherlands in the past week; with an average weight of 95,70 kilos. This is approximately 5% above the 2017 level and more than 10% above the 5-year average. In Germany, 930.595 pigs were hanging on the hooks, which is within the margin of 2% (compared to the long-term history).

Meat prices down
With the holiday season approaching, meat consumption in Northwestern Europe is likely to decrease. Demand from meat purchasing parties is weak. There is also pressure on meat prices this week. For example, the shoulders and middles decreased by approximately €0,02 per kilo. Domestic demand for meat is apparently better in Spain, as pork prices are increasing there, probably because tourists are heading to the south of Europe.  

Outside Europe, demand is also weak. Danish Crown says that finding sales is not easy, due to stiff competition from the United States and Brazil. Brazilian pork has been banned in Russia for quite a few months now. This means that the Brazilians are trying to gain additional sales space in other markets (especially Asia).

The slaughterhouse therefore does not place false expectations on the market. Only additional sales in Asia can provide an impetus, but according to the slaughterhouse this is not in line with expectations. Dutch slaughterhouses also report that pressure on pig prices is increasing and that less slaughter is an option. 

Exchange price the same
All in all, the outlook for the pig market is quite bleak. It perspective what was there last week has now disappeared from view. The DCA Exchange Price 2.0 remains at €1,38 per kilo for slaughtered pigs, which also applies to the price of live pigs (€1,10 per kilo).