Current ZMP market trends
Livestock and Meat
In the meat wholesale markets, the start of the school holidays led to a further regional decline in beef demand. The prices on the individual wholesale markets developed inconsistently. Due to the unsatisfactory marketing opportunities for beef at home and abroad, the slaughterhouses tried to lower the payout prices for young bulls. However, this was mostly unsuccessful, since many bull fatteners apparently only want to sell upcoming cattle for slaughter after the start of the new financial year. The supply is currently low. As in the previous week, young bulls in the R3 class brought in 2,50 euros per kilogram slaughter weight on the national average.
A different picture emerged at the slaughter cow market. Despite the still small supply, the prices for female animals mostly fell, in particular as a result of the difficult market situation for cow meat on foreign markets. The average price for cows O3 fell by four cents to 2,02 euros per kilogram. In the beef trade with Scandinavia, a noticeable drop in sales is expected due to the holidays. The cattle market was supported by steady livestock exports to Lebanon. As beef demand is not expected to pick up in the coming week, payout prices for young bulls and cows for slaughter are likely to be weak.
Wholesale interest in veal remained quiet, but prices remained largely unchanged. At the slaughterhouse level, slaughter calves were also mainly traded at the previous quotations; for animals billed at a flat rate, the average was 4,23 euros per kilogram. On the veal market, prices mostly fell.
On the meat wholesale markets, the pork business remained disappointing. When the sections were sold, price reductions often had to be accepted. The supply of pigs ready for slaughter was still not very plentiful and was easily absorbed by the market. Despite the sluggish meat sales, the price paid by the slaughterhouses for pigs tended to remain unchanged. As in the previous week, class E slaughter pigs cost 1,51 euros per kilogram slaughter weight on average across Germany. Since the supply of pigs for slaughter is likely to remain small in the coming week, hardly any price changes are expected. At the piglet market there was a good enough offer for sale. With medium to quiet demand from fatteners, the prices mostly remained unchanged, regionally they were somewhat weaker.
Eggs and poultry
The egg market tends to be weak for seasonal reasons. A restrained consumer demand is offset by a well sufficient supply. The market relief from purchases by the product industry and from exports is rather small. Chicken and turkey parts are in demand on the poultry market. Poultry prices tend to be mostly stable.
milk and milkproducts
The seasonal decline in milk deliveries to the dairies continued, falling 1,4 percent short of the previous year's level. Sales of products in the white range received no impetus due to the weather. The butter market has calmed down a bit. In the short term, large quantities went into private storage because the EU Commission granted compensation for the intervention price reduction for goods stored before June 30th. Packaged butter is stocked to a normal extent; some price increases were agreed for the beginning of July. The cheese market is still very balanced. Stocks are at a low level and production has not been as expansive as before due to falling milk volumes. However, the offer is usually sufficient to fulfill the requests. In some cases, further price increases were pushed through for July. The whole milk powder supply for short-term appointments is scarce, the prices are fixed. The market for skimmed milk powder tends to be somewhat calmer. The food industry still has a need in some cases, but hardly any new export contracts have come about. The animal feed industry primarily makes use of the intervention.
Cereals and feed
The prevailing cool and damp weather in large parts of Europe is having an effect on the grain markets. Processors and especially compound feed manufacturers, who are short on stocks, are again showing demand. Although the quantities required are usually relatively small, they exceed the very small supply. Even the individual batches of bread wheat that individual mills are looking for can no longer be obtained immediately everywhere. Grain prices are trending upwards. However, goods from the 2004 harvest are hardly affected by this, although the price pressure for this has also eased. Sales of rye from intervention stocks again reached considerable volumes with unchanged minimum prices. At the feed grain market, the marketers use their opportunities to clear stocks. In addition to feed wheat, feed barley and triticale are also benefiting from the market revival. Grain corn is still in demand; the prices are stagnating at the last reduced level. The prices quoted for malting barley from the new harvest do not offer any incentive to contracts from the producers' point of view. The market has thus reached its seasonal sales low, because old-crop goods no longer play a role.
The rapeseed harvest has started; As expected, the first results were positive. Overall, there is currently little movement on the rapeseed market; occasionally oil mills are interested in contracts, albeit at lower rates than before. – The prices for compound feed are currently partly stable, partly tending towards weakness. Unchanged rates are usually quoted for individual components containing energy. Citrus pellets show clear weaknesses, but this hardly stimulates demand. Based on falling prices on the US futures markets, the prices for soybean meal are falling more significantly. Nevertheless, processors are currently very reluctant to buy oilseed meal.
potatoes
The demand on the early potato market can only just be met. The marketing lead can be further expanded when the weather is consumer-friendly. The market receives an additional boost from the brisk demand of the frit manufacturers for new raw materials. There is no longer any competition with other countries.
Source: Bonn [ZmP]
