Very probably, the Spanish price will remain above €1.40/kg liveweight until late July, supported by the weakness of the supply and helped by the weather.
Swine markets commentaries
Export markets can keep profits flowing even if the industry nudges production into record territory.
In June, the Spanish price will keep on rising. The heart of the matter is how much more it will increase. If it is not possible to pass on the rise in the price of pigs to pork, all the upward trend will have to be at the expense of the abattoirs’ margin.
For good farmers, pigs continue to be very profitable, but for many not! Some are even losing money (incredible though it seems).
Continued emergence of producer owned packing is setting up a new closed market channel which may evolve its own pricing structures which take it farther and farther from the common, historical patterns.
Much in the summer will depend on the opening of the increased market capacity (as two major new plants swing open) and the industry reacts to it.