EU Pig Prices: High Degree of Uncertainty because of Discounted Prices in Germany – Quotations are Going Down
Noticeable pressure is exerted on the European pigs-mature-for-slaughter market this week. Almost all quotations have gone down more or less noticeably. From Great Britain, no reports are coming in about price changes.
Across the borders, the pigs-for-slaughter market is characterised by extensive quantities of live pigs on offer. Both the quantities and the slaughter weights are on quite a high level, thus pushing the market. Additional pressure is exerted by three major German slaughter companies unwilling to accept the German quotation’s price decrease but paying their own discounted prices. Throughout Europe, that aggravates the market participants’ uncertainty to a quite considerable extent.
The decrease of quotations is ranking from minus 1 cent in Spain to minus 7 cents in the Netherlands. With the price decreases being quite varied, the ranking is changing in the European price structure among the five EU member countries most significant in pig keeping. The Spanish quotation has returned to the top rank whereas Denmark slides to rank 3, thus falling behind France. The difference between Germany’s fourth rank and the Netherlands that are bearing the red light went up from 6.5 cents to 10.6 cents.
Trend for the German market:
At the beginning of the week, the situation remains very much uncertain on the domestic pigs-mature-for-slaughter market. For the market participants, it remains the most challenging matter to handle the backlog supply. With the situation as it is, the Toennies, Westfleisch and Danish Crown slaughter companies cling to their discounted prices.
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