Price pressure on the pig market has decreased this week. The question is whether stability can return to the market or whether the coming weeks will again be dominated by downward price movements. Something that slaughterhouses also allude to.
The pig market has been under pressure to a greater or lesser extent since the beginning of August. Shaking off the price pressure appears not to be that easy. It should not be forgotten that the prices come from record levels. However, the law of gravity applies. All the more so because meat consumption in Europe is suffering from inflation, which is now declining. Sales of pork and by-products outside Europe are also disappointing. This makes the square value a challenge. The weakened euro cannot nearly compensate for lower prices in the US and Brazil.
Slaughter rate is not increasing
At the moment, the pig supply in our country is reasonably in line with the slaughter plans. Some traders even report a tight supply, but not everyone experiences this. The slaughter figure has faltered somewhat in recent weeks. With 287.208 slaughters last week, there is certainly no question of the usual seasonal increase at this time of year. Whether the number of slaughters will increase in the coming weeks remains to be seen. In Germany there will be one day less slaughter next week. This is because of the celebration of the Day of German Unity on October 3. In the run-up to this, however, this did not cause additional price pressure in Germany, as the VEZG quotation stabilized this week at €2,25 per kilo.
More peace?
There seems to be more peace in the market, provided slaughterhouses do not decide to continue reducing prices. The necessary vote is being taken again for this, as the purchasing prices would not be in line with the meat part prices. However, the DCA Scholarship Award 2.0 does not provide for this. The quotation for slaughtered pigs remains at €2,18 per kilo. The price of live pigs is also the same at €1,73 per kilo.
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