December 22, 2010

EU pig prices remain steady amid well-balanced demand and supply

The EU slaughter pig market appears to be in a very steady condition in the last week before Christmas, due to producers being able to satisfy the brisk demand for pork over the past weeks.

Room was still left for the manoeuvre of quotations in the Netherlands and in France, which went up slightly again. As a result, the price in the Netherlands differs even more from the Danish price level. The French price now is left only marginally below the Danish quotation.

In all other countries, prices remain mostly unchanged. Germany takes the lead again, still being ahead of the five countries richest in pigs.

Supply of slaughter pigs is well in balance with demand on the part of the slaughter companies. As the producers were able to satisfy the brisk demand over the past weeks, the market is well cleared currently.

Only a few pig slaughters will be postponed to be carried out next year. Such kind of action is also reported on from the Netherlands. At present, however, the market participants are much more worried about the road conditions as well as about the logistical problems resulting from that than they are about possible market developments.