China keeps European pig prices afloat

After pig prices in Europe have risen sharply in recent weeks, from rust returned to the pig market. The Dutch pig price will therefore remain at €1,72 per kilo this week. The Spanish pig price also remains stable and is trading at €1,93 per kilo this week, which still puts it at the top of the German interest group's comparison.

France and Belgium did show a change in the ISN price comparison over the past week. While the French pig price rises by €0,01 to €1,84 per kilo, the Belgian pig price decreases by €0,03 to €1,65 per kilo.

The market is in two minds
However, the pig market is currently in two minds. On the one hand it takes the offer increasing again and on the other hand, demand from China is still very good. Due to the increase in supply, pigs are sometimes passed on, which puts some pressure on prices. This is a seasonal trend, which means that prices usually go down during this period.

The fact that this trend has not yet occurred this year is partly due to the strong demand from China. Due to the many outbreaks of African swine fever, the country is experiencing a major shortage of pork, which is being filled by importing extra product from Europe. import. In addition, the trade war with the United States ensures that the country prefers our continent.

The effect of demand from China is clearly reflected in European pig prices, which this year are considerably above the level of previous years. The Dutch pig price is €0,23 higher than the 5-year average and the German pig price is €0,22 above that average this week. The Spanish pig price, which is normally the most stable of all European prices, is also €0,17 above the level of the 5-year average.

Stable market in prospect?
All in all, the pig market is well balanced, with the price floor feeling reasonably firm. The good demand from China plays a major role in this sentiment, as the country is expected to continue to suffer from a pork shortage in the coming months. This means that it has to rely on increasing imports. Also the fact that no progress has yet been made the trade negotiations with the United States creates good opportunities for European exporters.

However, it does not appear that pork prices will rise much further. This is partly due to the fact that we are moving towards the autumn period and the pig supply will increase again. This is, for example, due to the delayed arrival of pigs on the market as a result of the warm weather in recent summer months.