European pig market back in balance

In recent weeks, European pig prices (ISN price comparison) have shown significant declines, caused by the outbreak of African swine fever in Belgium. For example, the German quotation fell from €6 to €1,496 per kilo in 1,306 weeks. With the exception of the Spanish quotation, the downward trend on the pig market has stopped this week. The pig price in Spain is still down €0,03 this week to €1,437 per kilo.

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Catholic holidays
The significant price drop can be seen as a margin correction for slaughterhouses. German slaughterhouses in particular have exerted considerable price pressure in recent weeks through a 'Hauspreise'. There are now rumors in the market that the balance between pork and meat sales prices has been restored.

Slaughterhouses in Europe are prepared to absorb the ample pig supply fairly quickly, although some traders cannot avoid the fact that pigs have to be passed on.

The chance that the meat market will pick up in the short term seems impossible. Vion announced on Monday that an important part of the meat processing industry, especially in Southern and Eastern Europe, will be closed on Thursday 1 and Friday 2 November. These are Roman Catholic holidays.

Stable Internet Exchange 
Due to the holidays, regular meat sales will be interrupted next week. With current knowledge, this does not necessarily have to lead to additional price pressure, but stable changes are obvious.

The Internet Fair also demonstrated this on Tuesday afternoon; the quotation remained unchanged at €1,42 per kilo, with 8 of the 14 lots being traded.