EU Pig Prices: Inconsistent Quotations – German Discounted Prices are Stirring the Market
This current week of slaughter, the European pigs-mature-for-slaughter market presents itself in a very inconsistent way. While the pigs-for-slaughter quotations appear steady in some of the EU member countries, they are going slightly down in others.
Steady quotations are being reported on from Denmark, Belgium, Austria, and Germany. And indeed, did the Belgium quotation pick up courage again after the African Swine Fever outbreak and the subsequent one-time but clear price correction for calendar week 39. For the second time in a row yet, the Belgian quotation was able to maintain the level achieved of a corrected 1.16 € per kg.
The Germans do feel rather upset with regard to the market development despite unchanged quotations. This is because of the current quotation level not being accepted by the processing industry, thus creating price pressure. After the major slaughter companies took the first step, various medium-size companies also paid no more than just discounted prices. The payment prices are deviating from the quotation by as many as 2 to 4 cents. Reducing the pressure has been made harder to achieve through Germany’s national holiday on 3 October and the day of slaughter missing because of it.
Slightly weaker quotations must be coped with in Spain and in the Netherlands. The price decrease typical for this time of the year in Spain is primarily caused by the seasonal increase in the quantities on offer as well as by the end of the holiday season.
If looked at as a whole, the European meat market may be regarded as the greatest concern, say market participants from the various EU member countries. Bad margins resulting from insufficient sales prices are having a negative impact on the atmosphere. On top, favourable offers from Belgium are making the prices a harder issue to negotiate.
Trend for the German market:
The current situation of discounted prices is adversely affecting the local pigs-mature-for-slaughter market. For seasonal reasons, the quantities of live animals on offer continue to be large with last week’s missing day of slaughter continuing to have an effect on the market. Hence, the price development remains an uncertain matter.
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