SPAIN - Despite the Russian border remaining closed to EU pork, the European market has not collapsed, writes Mercedes Vega from Genesus.
Pork storage is gaining ground by sending out frozen stocks.
The market outlook shows promise with higher demand for both summer and autumn seasons and higher pork prices, lower supply, equals better margins for the Spanish industry.
Spanish market ended last month unbalanced between supply and demand.
For three consecutive weeks bids fell down slowly and it will be the same over the coming week again. However, compared to same period last year, the volumes of market hogs are slightly higher.
While last week the number of hogs going to market were surprisingly lower, this was not compensated by higher weights.
Market hogs were down -560 grams in carcase weight. Few hogs, lower carcase weight, better prices. The Spanish price is higher compared to the rest of EU (Spain €1.39, Germany and France €1.25, and Holland €1.26), however the price differential with the rest of Europe is usual for this period of the year.
EU´s exports have declined in the first quarter by nine per cent principally due to the closure of Russian borders (71 per cent), and exports were also down to Ukraine, Belarus and China whereas in March the figures were the same as last year. On the other hand some exports have increased to other international markets such Japan, Korea, Hong Kong and Philippines.
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