The markets for farm calves and piglets in July

Slight price weaknesses

 From the current perspective, July will probably bring slightly declining producer prices for livestock calves from Simmental breeding. As early as mid-June, an end to price increases was announced in the southern regions of Germany. Bull fatteners will be more cautious about stabling during July, since the earnings for male slaughter cattle are likely to be weak in the summer months. One or the other fattener will also toy with the idea of ​​limiting bull fattening with the decoupling of cattle premiums or giving it up altogether. The producer prices for Fleckvieh calves are likely to be above the four euro per kilogram mark on average in June. However, this level will probably not be maintained in July.

Black-and-white bull calves should still be in high demand from calf farmers as housed animals throughout June and bring in comparatively high revenues. In the first half of June, bull calves from Holstein breeding were billed at over 170 euros per bull calf, which was just short of the very high prices of the previous year. In July, animals for fattening calves are no longer in such high demand, and the seasonal downturn in the prices of livestock calves will probably not be able to be stopped, although without a similarly significant drop in prices as in the previous year.

Only moderate deductions for piglets?

The price increase for slaughter pigs at the turn of the month May/June also boosted the piglet market in Germany. With lively demand from pig farmers and not too much supply, prices rose from week to week and in the 24th calendar week exceeded the previous year's line by around four euros per piglet.

In July, the piglet prices often tend to be weak, since the revenue expectations for animals ready for slaughter are also noticeably lower towards the autumn. Should the payout prices for slaughter pigs be able to hold their ground in July or only fall moderately, there could be no significant drop in piglet prices as in previous years.

Source: Bonn [ZmP]