Inside: Pigs & Feed
Positive pig market sees Easter weekend approaching
An interesting market, which is moving up across the board. For example, the trend is currently showing itself, at the beginning of April, on the European pig market. The quotations are shooting up in full speed here and there, of which Easter is the cause. This stretch seems to be gone now, but that does not stop the DCA Stock Price 2.0 from raising for week 15.
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For weeks, slaughterhouses have not been able to meet the good demand on the meat market with sufficient raw materials. There is a tight cross-border supply throughout Europe. As a result, the spot market for meat has gained momentum in the run-up to Easter. With one week to go, the prices are now likely to weaken. That's how the expectation is. The Internet Exchange has been symbolizing this trend for 3 trading days. The fact that the auction today, April 7, moved up another cent to 1,78 euros can be seen as proof of a strong foundation.
9 cent
plus
Small side note: meat market
High-quality components such as backs (+0,08), shoulders and bellies (+0,09) recorded nice increases in week 14. This applies to the top end of the market. Hams had a more moderate mutation. If pig prices do not 'shout' themselves out in week 15, there is no need to fear a correction. Slaughterhouses have also had excellent weeks in terms of price formation.
However, the good market does deserve a comment: since this week, slaughterhouses have noticed significantly more resistance from the industry. Demand in Europe is also weakening somewhat. After Easter, the offer will probably function more as a support than as a booster.
Easter weekend welcome break
Because the pig market has been quite hectic in recent weeks, the Easter weekend is being used as a welcome break. Belgium and the Netherlands have enough pigs for the slaughter plans for week 15. This also has to do with the fact that pigs are brought forward. Traders in Germany are also noticing more limited placement spaces. Traditionally there is no slaughter on Good Friday. Some parties therefore even have pigs left.
For week 15, the DCA Exchange Price 2.0 increases by 3 cents, resulting in 1,68 euros per kilo. Live pigs sell for 1,33 euros, also a plus of 3 cents.
No proliferation of allowances
Now that the first quarter is behind us, an initial assessment can be made of the DCA Exchange Price 2.0 compared to other quotations for slaughtered pigs. What is striking is that there has been no proliferation of allowances. In each case, the change in the base price was enough to induce trade (see table below).
