Market report 09.06.2023

A relatively normal week for this time of year is coming to an end. On the one hand, there was another public holiday in some regions this Thursday, which was of course used again in many cases for a long weekend. On the other hand, we are in the middle of the phase when European industry is essentially busy planning its summer break. The first customers are announcing their holiday weeks. No one feels at the moment that raw materials are in short supply and that there is no danger of prices rising. No one is particularly hyperactive and deliveries and supplies can be made on basis of the current production. We have been pointing out for quite some time that, from our point of view, there are some types that are overvalued in the general price structure and this seems to be slowly becoming accepted in the market. Even if prices in our country have not yet changed much, or are presently and officially not changing much, there are more and more rumours every day that price reductions are now being seriously discussed in other European countries. This will only be reflected in our market in the new negotiations in the coming weeks. The commodity groups that essentially have to hold their own on the international markets and for which the share of spot transactions is much larger have adjusted their prices already slowly and with a certain tenacity in the international

The kill

No change in the kill. In our region not hampered by the holiday and we could look back on a normal production week. The beef business is not improving at this time of year nor are meat producers pressing larger stocks in the cold stores and freezers. Looking at live cattle prices, they are also likely to have been quite expensive. In any case, live cattle prices have fallen by 10-15% over the past months. Since the pork business is not compensating at the moment, the situation in the meat industry is certainly not good either. At the moment, there is a lack of rain that could influence the feed situation. If there is not satisfactory rainfall in the next two weeks, this will also have an impact on the kill in the further course.

What do we expect

We don’t have any great wisdom to offer at the moment regarding the further development of the market. Demand is never zero and so week by week it kind of goes on and on. However, it will probably take a while before the situation can fundamentally improve. But that is no news and has been the case for weeks or better months now. So we continue to wait for ‘deus-ex-machina’ and in the meantime enjoy the nice weather.