Pig and pork prices shift higher but market demand stalls

The European pig and pork sector had another week of sharp increases in Week 34 across major regional markets. The DCA EU-5 Piglet Price Index climbed by €3.97 euros to €37.17 euros per piglet from €33.20 euros in Week 33. However, market sentiment on the ground suggests that this upward momentum has come to a temporary standstill.The upturn in the pig and piglet market from earlier this month has paused. As slaughter prices have stopped rising further, additional piglet price increases have stopped too. The balance in the piglet market has shifted, and after strong demand last week, traders have no buyers this week. Furthermore, piglets placed now will only be ready for slaughter after Christmas, a period when confidence in pig prices is traditionally low due to expected price write-downs by slaughterhouses. Export demand for piglets is also weak. German buyers are holding back and seeking cheaper alternatives in Denmark, while Spanish demand has slowed in line with seasonal trends. Piglet prices per region are already reaching €40 per piglet.On the supply side, physical availability is beginning to rebuild slightly as temperatures normalize, though tightness remains noticeable in the Dutch market. In Germany, slaughter volumes are likely to rise more quickly in the coming weeks, supported by Danish Crown processing its domestic stocks. Meanwhile, pork sales continue to struggle. Domestic buyers are finding difficulty absorbing recent price increases, while European exporters are facing competition in Asian markets from cheaper Brazilian and US pork. Live pig availability is being limited, and buying interest is calm, with the German quotation, VEZG, ranging from €1.60 per kg. However, broader gains are being constrained by flat quotations from key processors. The market is currently in a paused trend following past price increases, as pig availability and carcass weights recover. Ongoing export pressure and an expected normalization of supply are expected, while actual pork prices in the market continue to drop due to weak buyer demand.