Inside: Pigs & Feed
Everyone has the same opinion about pig market
Opinions on the pig market often differ and there is not a consensus every week. After a period of yo-yo weeks, less slaughter and even Hauspreise, the opinion is almost unanimously shared that unchanged is the only option for week 6.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
After some turbulent weeks, the pig market enters calmer waters at the beginning of February. With the Germans in the lead, attempts were made several times in January to push prices up, but each time there was a reaction from the slaughterhouses. Either by slaughtering less and cutting costs considerably, or by stubbornly applying a Hauspreis. A pig price in Germany just above 1,50 euros per kilo is the maximum that German slaughterhouses allow, even at the beginning of February.
The market also moved around this level for a few weeks in October when the end-of-year sprint had not yet started. This shows that a normal supply in combination with sales to China is sufficient to keep prices at this level. A further increase from the European meat market has not been possible since October, with the exception of the holidays. Given the past, pig prices are at acceptable levels. Yet there is also a strong urge for improvement. This is mainly due to the rapid rise in piglet prices, which means that the market is looking for space that is not actually there.
There is a normal offer for the coming week. There is certainly no shortage, but the market is not overcrowded either. Here and there there are reports that the last pigs still have to be placed, but on balance it is expected that these pigs will also be admitted and the pig market is heading for a week of stability and balance.
In the background there are sounds that demand on the meat market is starting to loosen up, although no price increase is expected in the short term. It remains to be seen which direction the market will take in February. Some think that the Germans will trade at 1,60 euros by the end of the month, while others expect Germany to return to 6 euros per kilo in week 1,50. It is a fact that slaughterhouses do not yet plan to hunt for the last pigs. Historical trends show that this mainly happens in the spring and in the run-up to Christmas.
The space between the resistance level at the bottom and the top of the market is therefore close to each other. For week 6, the DCA Exchange Price 2.0 remains at 1,48 euros for slaughtered pigs and 1,17 euros for live pigs.
