Inside Pigs
Poison cup pig market not empty, price blow again
For a while it seemed that the German pig market was entering more stable waters. New export barriers for Spanish slaughterhouses are already increasing the pressure on the entire pork supply chain.
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The slaughterhouses and the VEZG met 2 weeks ago and agreed on a price level of €1,37 per kilo of slaughtered weight. Last week the market seemed somewhat balanced at the new and low price level and the quotes were left unchanged. In recent days, pressure has been increased by some slaughterhouses and lower prices have again been demanded.
Spain's exports to China continue to come under pressure
While pork exports to China have been declining for several months, this flow will come under even further pressure in August. Four Spanish slaughterhouses have lost their export licenses for exports to China. With expanding Spanish pork production, exporters will have to seek refuge even more on the European internal market, resulting in price pressure. There is still little to report about domestic demand for pork, which is quiet.
At the moment there appear to be few factors that can give the market a boost. Everyone in the market is anxiously looking forward to autumn, when the seasonal supply increases again and the market may become even more unbalanced. The VEZG quotation for Wednesday, August 18 is set at €1,30 per kilo of carcass weight, which is €0,07 lower than last week's quotation.