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Germany or the strongest guy in the class

The prices recover both in northern and southern Europe.

Monday 2 March 2015 (3 years 17 days ago)

One month ago we said that the price of pigs had hit bottom and that it would rise slowly and with great difficulty. Things have not gone exactly that way.

It is well known that, with regard to swine, Germany proposes and disposes what may happen in the whole of Europe. The prices in Germany rose, consecutively, + €0.05, + €0.02, + €0.05, + €0.07 and repeated price last week.

All the European markets without exception have followed the trail of Germany and the prices grow both in northern and southern Europe. Pork consumption and sales are still at a standstill, and the stocks do not fall, but the price of pigs has risen (with an apparent strength) a step.

The weight of the carcasses has dropped, although they still are at record levels for this time of year. The live pigs supply has decreased.

In the last week of February, the European Commission has decided to trigger a private pork storage operation. Its terms seem undoubtedly though for storing pork for three months. Spain and Germany (the two first countries in terms of slaughterings) disagreed with this measure. Denmark supported and seconded it.

This storage operation will provide strength in the short term, and when June arrives and this stored pork has to enter the market, we will see. The circumstances may be very different from the current ones.

The euro is still weak and this is an element that favours confidence.

There is less time left for May. €1.145/LW is a good starting point for moving until spring. Looking back, there is no doubt that what has happened could have been much worse indeed.

The Spanish collection of proverbs says: 'No evil lasts for a hundred years.'

Guillem Burset

Guillem Burset


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