The slaughter cattle market in May

Demand for meat receives impetus

Experience has shown that more lively demand for beef and pork can be expected on the German meat markets in the coming weeks of May. The start of the barbecue season should provide impetus for the meat sector. Prime cuts of beef and veal are also often the focus of interest, as many private family celebrations take place during this time and the asparagus season is in full swing - provided the weather cooperates. On the other hand, the Pentecost holidays begin in some federal states towards the end of the month, which often has just as disruptive an effect on the cattle and meat markets as the lack of slaughter days due to the holidays. In addition, the eastward expansion of the EU and Russia's threat to close the borders for EU meat from May 1st are causing uncertainty.

Price weaknesses for young bulls

Following the seasonal course, the slaughter of young bulls increases from April to May; and as supply grows, prices are likely to fall. Should Russia actually implement the announced import ban, this would cause additional price pressure. However, the public holidays in May could provide an impetus for demand, because then, depending on the season, noble and finest cuts from the back lots are the focus of interest. However, the marketing of the less precious parts from the forequarter is likely to cause problems. Nevertheless, the young bull prices could reach the previous year's level for the first time this year. At that time, animals for slaughter in meat trading class R3 cost a monthly average of 2,46 euros per kilogram of slaughter weight.

Small slaughter cow offer

Cow slaughter usually decreases when grazing begins in early May. In all likelihood, the drop in supply will have a price-supporting effect. The firm trend in payout prices that has already been observed in the course of the year so far could continue. However, increased live imports from the accession countries cannot be ruled out, which could cause price weaknesses in the region. Overall, the prices for slaughter cows in the trade class O3 are likely to be close to the previous year's level of EUR 1,80 per kilogram.

veal asked

The demand for veal will in all probability receive a boost in May, which is partly due to the asparagus season. At this time of year, it is usually the noble cuts that are the focus of marketing. However, the prices for veal for slaughter are currently at a relatively high level, so that moderate price reductions from April to May cannot be ruled out. However, the previous year's level of EUR 3,85 per kilogram for animals billed at a flat rate should continue to be exceeded, because fixed calf prices are also expected in the other EU countries.

Lamb prices below last year's level

Prices are expected to fall on the slaughter lamb market. The demand for lamb is usually much quieter after Easter. In the course of the year to date, lamb prices have been noticeably below the level of the previous year, and this is unlikely to change much in the month ahead.

Uncertainty in the slaughter pig market

The slaughter pig prices usually show an upward trend in May. This is because supply generally meets buoyant demand, and the barbecue season supports sales of pan-fry items. It is quite possible that this seasonal development will also occur this time if the weather conditions are appropriate. In addition, it is expected that the late effects of the summer of the century will lead to a somewhat reduced supply of slaughter pigs in Europe. From May onwards, however, the relocation of private stocks, the eastward expansion and possible difficulties in the export business with Russia must also be dealt with, so that prices on the slaughter pig market are not certain.

After the price correction before Easter, however, there are some indications that pig prices in May will be a few cents above the level of the previous month and clearly exceed the previous year's level of 1,20 euros per kilogram for animals of the E class.

Source: Bonn [ZmP]