Price pressure on the pig market is playing up again

Last week we headlined that the pig market had taken a breather after a significant drop. It seems almost over. It seems that the knife will again enter the German pig price next week. The German branch of Vion has already taken an advance on this and will pay 5 cents per kilo less from next week throughout Germany. The other German slaughter companies do not do this.

'A lot of pigs'
Despite far lagging slaughter figures, there is talk of a wide range in Germany. This is partly the result of the broken slaughter week at the beginning of October. In addition, (more than) pigs ready for slaughter have been released from the AVP areas in Emsland. Slaughterhouses meanwhile maintain a calm slaughtering pace, which is in line with the disappointing meat sales. Due to the high energy prices and falling meat prices, there is no need to freeze. It seems that meat companies want to reduce frozen stocks. There are signals from various customers of an oversupply of meat, while the slaughter figures are not very high. 

The range is also extensive in the Netherlands. Remarkably spacious even. This is also apparent from the slaughter figures, which suddenly rose to 10.000 by about 316.000 pigs last week. We last saw such high numbers in March. Traders speak of 'a lot of pigs on offer'. Pigs may be brought forward, although this is not apparent from the average slaughter weight, which increased by 0,40 kilos to 98,80 kilos last week. 

Meat sales are disappointing
Meat exports outside Europe leave much to be desired. Chinese pig prices are recent increased considerably, suggesting the country will start importing more meat. The United States has been benefiting from this since August, according to export figures. The European export figures for that month are not yet known. In addition, the more positive signals are also not confirmed by exporters. In fact, sales to the United Kingdom and Japan are declining due to the weak exchange rates of the pound and the yen respectively.

The internal European meat market cannot yet benefit from the Christmas demand. It won't be released for a few weeks. In the meantime, retailers want to buy competitively, in order to entice consumers to the store shelves in times of high inflation. Negotiations are reportedly going strong. The ample meat supply favors the bargaining position of retailers. This explains the increasing pressure on pig prices. 

Stock price does not break
A number of traders opt for a downward movement of the Stock Price at DCA Markets. However, no reduction has yet emerged from the average. The quotation of the slaughtered pigs thus remains at €1,87 per kilo, while the price of live pigs remains at €1,48.

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