Supply and corona keep the pig market in its grip

The ample pig supply remains the bottleneck on the pig market. This has been a problem for months and it doesn't look like the traffic jam will resolve any time soon. Many traders are experiencing backlogs, especially in the east of the country. The German drop in demand is being felt considerably there.

Meat market is improving, but corona danger remains
For the third consecutive week we are receiving better signals from the meat market. The prices of tenderloins and pork tenderloin are slowly increasing, while there is also a good demand for hams. However, nervousness is creeping into the market due to the rising corona infection figures. The measures taken by governments are not yet drastic. If the situation worsens, it is not unlikely that the catering industry and major events will suffer again. This would be a blow to pork consumption. Sales of parts outside Europe are disappointing. China only buys by-products, but volumes and prices are much lower than in recent years. 

Lagging slaughter figures
The wide range can be explained by the lagging slaughter figures. In the past week, 295.438 pigs were on the hooks. A low number compared to previous years. The average slaughter weight has increased to 99.60 kilos due to the liver levels. This is tough, even though the weights were even higher at this time of year last year. In Germany, the slaughter figure from week to week remains just above 800.000, which is also low.

All in all, the pig market remains in a difficult vacuum. The better signals from the meat market are too small to set the market in motion. Although increases were not considered impossible in recent weeks, a stable rate seems to be the maximum achievable for the time being. The DCA Stock Exchange price therefore remains at €1,19 per kilo for slaughtered pigs, while the price of live pigs remains unchanged at €0,90.

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