Current ZMP market trends

Livestock and Meat

The beef trade on the wholesale markets was characterized by a certain amount of pent-up demand in the first week of June. Demand is currently concentrating on the finer cuts such as roast beef, fillet and various leg parts. The prices strengthened. The supply of female cattle for slaughter was also extremely limited at the beginning of the first week of June. The prices paid for slaughter cows therefore continued to rise; for cows in class O3 they rose on average by two cents to 2,02 euros per kilogram slaughter weight. On the other hand, the demand for young bulls from the slaughterhouses fell back slightly. At the same time, the supply of young bulls increased due to the recent rise in prices. Therefore, surcharges could usually no longer be enforced for young bulls. Animals in the meat trading class R3 are expected to cost 2,47 euros per kilogram on average in the reporting week, which would be two cents less than in the previous week. Sales of precious parts to Southern Europe went very smoothly. There was also rapid demand for roast beef and pistols from cows produced in Germany in France. The trade conflict between Russia and the EU over disputed veterinary certificates has flared up again; At the beginning of the week, deliveries of beef to Russia were not possible. The further development remains to be seen. – In the coming week, prices for female cattle for slaughter are likely to remain stable, possibly trending higher again. In the case of young bulls, on the other hand, one can expect at most maintained, possibly even slightly declining prices. – The veal trade on the wholesale markets was characterized by good sales opportunities as well as considerable backlog demand and additional purchases. Veal prices for slaughter tended to remain unchanged across the board. The federal funds for flat-rate animals stagnated at around 4,54 euros per kilogram. – Stable to rising prices dominated the veal market.

Pork was also sold smoothly on the wholesale markets. Grill items were the focus of the shops. Pork prices rose. Animals for slaughter were ordered very quickly by the slaughter industry over the course of the week, but the supply was still only moderate. The payout prices for slaughter pigs were therefore able to stabilize significantly. On average across Germany, pigs in meat trading class E are expected to fetch 1,39 euros per kilogram of slaughter weight, five cents more than in the previous week. – At the beginning of next week, the payout prices for slaughter pigs should tend to be stable at a high level. – The friendly demand trend continued on the piglet market, and prices rose by an average of one to three euros per piglet.

Eggs and poultry

The stable tendencies of the two previous weeks have not been maintained on the egg market, the supply is plentiful and the prices are falling again. Neither the food retail trade nor the egg product industry buy market-relieving quantities. - When it comes to poultry, grill-ready chicken and turkey parts are in demand. The supply covers demand and the slaughterhouse sales prices remain stable. However, the prices for chicken and turkey at the producer level partially fell.

milk and milkproducts

The amount of milk delivered to the dairies is declining in line with the season and is still below the previous year's level in terms of volume. The situation on the butter market is inconsistent: Packaged butter is in high demand, prices are at the same level. There is only a limited supply of block butter, and the demands tend to be firm. There is still greater demand, especially for private storage. Local cheese is in great demand both domestically and in southern Europe, so that the stocks in the maturing warehouses have shrunk further. Continuous exports to third countries also contribute to relieving the burden on the market. Cheese prices are picking up again for the first time after demands had eased since the end of last year into April. Prices for skimmed milk powder are stable, and contracts have already been concluded for most of the goods currently produced. Hardly any skimmed milk powder is available at short notice.

Cereals and feed

The prices for grain from the 2003 harvest continue to fall. Providers of remaining lots see little chance of the receivables stabilizing by the end of the financial year. They offer the old-harvest lots for all directions of use and sell their goods quickly if there is interest. However, there is almost no demand on the wheat market anymore; the mills are just making plans and there is no sign of a supply bottleneck. If necessary, the mills can always find individual batches at prices that continue to fall. The dwindling market volume of imported wheat does little to change this. In the third quarter, the export business also declined because deliveries outside the EU were still possible. Brussels had suspended the support: there were neither tenders nor export refunds. With the sale of the remaining bread rye to the BLE by the end of May this year, market participants should have made their preparations for the coming harvest. In the last week of May, around 5.900 tons of rye were sold from the BLE stocks based on the minimum price. The remaining batches of fodder barley are offered at low prices, and previous demands are hardly ever confirmed, even in surplus areas. The market participants are quickly preparing for the coming harvest. The export business has also declined noticeably. The last stocks of fodder wheat and triticale are now also available for sale. The prices are quite different, but are all well above the November intervention price 2004/05. In the case of grain maize, interest in buying is very low and is sometimes limited to second hand. - There are hardly any sales of rapeseed on the cash market, although there is a local search for old-crop goods. New crop rapeseed is not for sale; with the current low prices, farmers are reluctant to enter into contracts. - In the first nine months of the current financial year, compound feed manufacturers produced 14,8 million tons, almost four percent more compound feed than in the same period last year. Farmers are currently constantly asking for compound feed. Corn gluten feed is being bought less, so the suppliers have withdrawn their demands again. Oil meal is also cheap at the moment; since the beginning of May, prices for soybean meal have fallen by up to 25 percent. The demands for rapeseed meal that can be delivered immediately fell by up to ten percent compared to the previous week.

potatoes

The supply of new potatoes is now plentiful. The late Italian and Spanish deliveries from the areas around Naples and Valencia also contribute to this. The volume pressure from abroad is not particularly great, but it is still having an effect on the price development here: the demands for small containers that will be delivered in the coming week have fallen again. There are currently too many providers who want to benefit from the currently high prices.

Source: Bonn [ZmP]