Inside: Pig Market

DCA Stock price 2.0 does not budge

June 23, 2017 - Wouter Baan

Various price movements are visible on the Dutch pig market this week. The tight supply of pigs functions as a price-increasing instrument, but the meat market is a tough block.

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The quotations on the Dutch pig market usually increase fairly evenly. At least, in terms of price movements. However, this was not the case this week. The DCA Exchange Price 2.0 increased by €16 last Friday, June 0,02, to €1,76 per kilo.

1,77

euro

Van Rooi noted per kilo

This move was not followed by Vion on Monday 19 June, while Compaxo also left the listing unchanged. Van Rooi, on the other hand, followed the movement and also increased by 2 cents to €1,77 per kilo. The divergent movements on the pig market demonstrate confrontational forces between the tight pig supply on the one hand and a sluggish meat market on the other.

internet exchange
Despite the fact that the Internet Exchange paved the way for a higher pig price in Germany on Tuesday, June 20, this did not happen. The 'Vereinigungspreis' remained stuck at €1,81 per kilo. That is a price level that the North/West committee has been sticking to for 4 weeks now.

On Friday, June 23, it became clear that, as far as the Internet fair is concerned, no increase should be expected in the coming week. The Internet Exchange fell by €0,02 to €1,87. Of the 24 lots offered, 21 were traded. The German market is under great tension, and it is assumed that Germany will remain unchanged on Wednesday. Because the supply of pigs in Germany is tight, tension will increase further.

Outside Europe the market is more moderate

Decrease in revenues
In recent weeks, yields on the front, middle and bellies have fallen between €0,01 and €0,03. The market is also more moderate outside Europe, although the price pressure is somewhat offset by the higher pork price in the United States.

Tönnies' announcement, to cut back on bear meat, is a sign that China is in need of fewer volumes. The quality of the pork is starting to matter more, and the German slaughterhouse is probably trying to improve this. Despite the fact that more and more bears are being slaughtered in Europe, marketing bear meat remains a challenge in some countries.

Offer in the Netherlands
Just like last week, 2 stories can be heard on the Dutch market. Meat sales are slow. Even stabilizing meat prices requires a lot of effort and does not always have the desired result. Meat sellers point to the upcoming holiday season and use it to change the pork market's mind.

1,76

euro

per kilo, the DCA Exchange Price is 2.0 for slaughtered pigs

However, the trade in pigs is proceeding without problems. The numbers are quickly absorbed by the slaughterhouses and anyone who wants to supply more pigs can easily lose them. The latter was valued differently by the slaughterhouses in the past week, but it is decisive for the change in the DCA Stock Exchange Price 2.0.

DCA Scholarship price unchanged
For next week, the DCA Exchange Price 2.0 will remain at €1,76 per kilo for slaughtered pigs. The price of live pigs is also unchanged at €1,39 per kilo. 

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