German slaughterhouses cut pig price sharply

There have been doubts in recent days as to whether the German pig price could hold up. No lots have been traded on the Internet exchange for a few auctions in a row. This can be seen as a signal that there is little demand for pigs ready for slaughter. Those doubts were justified, because Vion as Tönnies lower the pig price by 10 cents to €1,75 per kilo. In the case of Tönnies, these are deliveries that are not contracted. The VEZG quotation will remain unchanged for the fourth week this afternoon at €1,85 per kilo. This means that there is an imbalance between the quotations and that increases the tension. 

With 755.076 slaughterings last week, a large part of the slaughtering capacity of our Eastern neighbors remains unused, but apparently that does not stop slaughterhouses from making a significant reduction. 

Warm weather coming
The moderate sales of meat and ample frozen stocks depress the value of the carcass, as is clear. Due to the expected heat next week - and the growth slowdown that comes with it - the supply seems to be tightening. The summer weather may give meat consumption a boost, but at the moment the market feels weak.