Inside: Pig Market
German yo-yo market leaves DCA stock price 2.0 untouched
The last of a string of broken weeks is about to begin. How does the DCA Scholarship 2.0 react?
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The German pig market shows two faces this week. The "Vereinigungspreis" increased slightly from 2 cent to 31 euros on Wednesday, May 1. This was mainly based on the Internet Exchange, which was still trading considerably higher at the time.
The Internet Exchange had to give up all of last week's profits this week. On Friday, June 2, the price fell by 3 cents, after having previously lost one cent. The Internet Exchange only seems to want to flirt with 1,90 euros per kilo if there is persistent BBQ weather.
Import ban lifted
The good news in Germany is that Tönnies slaughterhouse can export to China again. The export of pork was not possible for months due to an import ban. With the lifting of the ban, nothing stands in the way of a hot summer on the pig market.
Compared to April, there were less extreme price increases in May. This was due to a series of broken weeks. Next week the slaughter program will be interrupted by Whit Monday. In the following weeks, interruptions are passé and the pig supply is tested again. Since the undertone of the market is still positive, increases appear to be within reach. Opinions are divided about the chance of success.
Dutch market
In the Netherlands there are two opinions. There are enough pigs for the coming week, due to the cancellation of a slaughter day. Compared to last week, the supply of pigs seems to be less large, but there are still more than enough.
The weights have a tendency to look downwards, which could be caused by, among other things, the warm weather and the stagnant piglet market. Due to less demand for piglets, the pigs are being pulled to get the piglets placed.
Because there is still so much uncertainty in the market about what awaits the pig market in the near future, and according to insiders it could really go in any direction, this week does not seem to be the time to send signals other than unchanged. For week 23, the DCA Exchange Price 2.0 for slaughtered pigs remains at 1,74 euros and for live pigs at 1,37 euros.