The supply of pigs curbs DCA Scholarship price 2.0

With Labor Day approaching (May 1), the North/West committee saw room last week (wk. 17) to increase the 'Vereinigungspreis' by 3 cents to 1,76 euros per kilo. Because of this holiday, there is no slaughter on Monday and that affects the market.

Slaughterhouses closed
Slaughterhouses were also closed in other countries, including France. This means that the supply this week has increased somewhat and turned out to be more extensive. An unchanged pig price in Germany was therefore a logical consequence. In France this even led to small reductions. Slaughterhouses took the opportunity to restore their margins somewhat. French media reported this.

The Internet Exchange on Friday, May 5, was slightly more friendly with an increase of 1 cent compared to last Wednesday, reaching 1,84 euros. All offered lots (14 pieces) were traded. The price range within which trading took place varied between 1,805 euros and 1,860 euros.

meat market
The rapidly rising pig prices in Europe are causing concern further down the chain for problems. Meat producers and sausage makers have been confronted with rising purchasing prices for some time. In Germany, some companies are even in dire straits. A tough challenge is to translate the increased purchasing prices to supermarkets and other customers. A tight supply means that the pig market still has the potential to continue to rise. It can be noted that space is not infinite and that resistance increases.  

Dutch pig market
The undertone on the pig market is positive. The full slaughter week was more than welcome to get the pigs that were passed on slaughtered. However, not every trader was able to place the pigs this week, which means that pigs still have to be transferred this week.

Opinions differ about the expectations of the German pork price for the coming week. There are rumors that Tönnies wants to lower the price, but it is said that this is not really obvious. Tönnies may want to indicate that they are looking for pigs, but that the supply is difficult to come by. Suggesting a price reduction could potentially loosen the supply of pigs.

On the other hand, whether it is realistic to think that Germany will reach 1,80 euros will have to be seen on Wednesday, May 10.

The supply of pigs should work
The 3 cent increase in the DCA Exchange Price 2.0 for week 18 is experienced as significant by the slaughterhouses. It was not possible to achieve this increase in meat sales. The new contracts concluded with China are also realized at lower price levels. The supply of pigs should provide indications in the near future as to which direction pig prices may go.

Because the supply of pigs is sufficient in the coming week, the DCA Exchange Price 2.0 in week 19 will be put on hold at 1,71 euros per kilo for slaughtered pigs. The price of live pigs is also unchanged at 1,35 euros.