EU pig prices range-bound, for now
EU-28 prices for pig meat have remained range-bound in the year so far, although there is reason for suppliers to be optimistic about market conditions in the coming months.
The EU Reference Price was quoted at €152.95/100kg for week ended 5 March 2017, up 37 eurocents on the week before, and over €28 more than the price a year ago. A stable market price suggests that supply is relatively well balanced with demand for pig meat in the EU. A decline in the European breeding herd from Dec 2015 to Dec 2016 of nearly 2%, and high weaner prices are both supportive of a tightening supply picture. This comes a time of year when European demand is typically weaker than average, and so prices could receive a boost in the coming months, when demand is expected to return.
EU exports in general to China have been strong in recent months, increasing by over 7% from November to January, despite Chinese import volumes in total dropping more than 6% over this period. Spain in particular has seen its export volumes to China increase in January. This all contributes to the tight supply situation on the continent.
Duncan Wyatt, Lead Analyst
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