Inside: Pig Market
Is the Internet exchange aiming for a higher pig price?
The German pig market has been shifting to a price level of 1,81 euros per kilo for several weeks. There was little or no room for a price increase. In the meantime, however, the Internet exchange has risen by 3 cents and this is fueling hopes for a higher pig price in Germany. In theory there are 3 possibilities.
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With the exception of Southern Europe and the Netherlands, pig prices in Europe remain at the same levels. In the ISN price comparison, the Netherlands rose by 2 cents this week to 1,72 euros. That is a movement that stems from the price increase the DCA Scholarship Award 2.0, which rose by 16 cents to 2 euros on Friday, June 1,76. The pig price from Vion remained at 19 euros on Monday, June 1,82.
8
cent
The Spanish pig price has increased by 2 cents this week, to a rounded value of 1,86 euros. The Italian pork market is the most popular, given the increase from 5 cents to 1,94 euros.
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The price increases in the Netherlands, Spain and Italy reflect some price commotion in Europe. The Internet Exchange, the indicator of the German pig market, has also been on the rise since last Friday. Over the last 2 trading days, the quotation has risen by 3 cents to 1,89 euros. This means that the difference with the 'Vereinigungspreis' has increased to 8 cents. Usually the bandwidth between the two quotations is approximately 6 cents. This means that in theory the way is open for a higher German pig price.
Unchanged to plus 0,02 euros
A price increase is possible based on the tight pig supply. The question is whether German slaughterhouses want to go along with this, given the pressure on the meat market. The North/West committee has until 21 p.m. on Wednesday, June 14.00, to consider an increase.
On the eve, the options vary from unchanged to plus 0,02 euros per kilo. In the last week of May, the North/West committee decided, based on a higher Internet exchange, to increase the pig price by 0,01 euros to the current level of 1,81 euros.