DCA Stock Exchange Price keeps up with the German market

Relatively cold temperatures and broken weeks kept the pig market in Europe afloat in the first weeks of May. This silence was broken on Wednesday afternoon, May 17, when the German pork price sent a strong signal by rising 4 cents to 1,80 euros. The German pig market is mainly stimulated by a tight supply. Dutch traders report excellent sales opportunities at German slaughterhouses, such as Tönnies and Westfleisch. This also relieves the pressure on the Dutch pig market, which is fuller.

Slight correction for Internet fair
The Internet Exchange corrected slightly on Friday (minus 0,01 euros to 1,84), after the auction on Tuesday afternoon cleared the way for a higher "Vereinigungspreis". Next week Germany will also have a broken working week, but that will hardly affect the mood. Therefore, it is expected that the German pork price can easily maintain the increase next week. If the weather is good, the market can look for a new increase again from June. The large slaughterhouses cannot afford to create a mood by means of a "hauspreis". They must follow the North/West changes to be assured of supply. 

Pressure on slaughter sows
The market for sows for slaughter is less good. There has been price pressure for 2 weeks now. The expectation is that the price can stabilize. The sow price of Tönnies fell by 2 cents this week to 1,32 per kilo. Vion's sow price even rose by 4 cents to 1,48 euros. The sow market is still rated extremely high.

The reason for the price correction probably has to do with the bankruptcies of the German sausage makers. Sow meat is mainly used in the meat industry, where critical situations arose in mid-May. As a result, the demand for slaughter sows is at a low level.    

Meat market out of resistance
The German meat market did express resistance to the price increase. Achieving a price increase for retail is extremely difficult. German supermarkets are afraid to adjust prices upwards because pork consumption is under pressure. In the Netherlands, various meat parts (hams, bellies and backs) recorded unchanged this week. Vion communicated on Monday that the front section is still under pressure and that appears to be true. In week 20 the shoulders recorded a minus of 4 cents. That means a minus of 0,07 euros for this part in roughly 2 weeks. The hams could actually increase, because of the asparagus season. However, sales are going cool. 

Germany follow
Dutch slaughterhouses are assured of supply next week, due to the cancellation of a slaughter day. However, a widely supported opinion in the market is that the Dutch pig market should remain connected to Germany. The DCA Exchange Price 2.0 for live pigs therefore increases by 3 cents to 1,74 euros per kilo. Live pigs record a plus of 2 cents and amount to 1,37 euros.