Inside: Pig Market
Pig market is heading in a different direction, Stock exchange is correcting
It is anything but boring in the pig market, despite some pig prices mutating 'motionlessly' for weeks. The pig supply and the meat market are still in conflict. The question is whether the DCA Stock Price 2.0 can stand or should it give direction to the vote.
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This week the Internet Exchange reflected the current tenor on the pig market, i.e.: stable to slightly down. The indicator of the German pig market remained unchanged on Tuesday and fell by €0,01 to €1,86 per kilo on Friday, with 3 lots not being traded. It is the situation on the meat market that makes pigs less in demand. According to slaughterhouses, meat prices are falling every week. This then affects margins. The lucrative export to China is also at its peak return and prices are under pressure.
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Normal to wider range of pigs
On the other hand, it is not the case that slaughterhouses are flooded with pigs. However, the supply is increasing if compared to last week. For next week, traders describe the offer as 'normal' to wider. This somewhat supports the pork price. However, there is a growing realization that a higher pig price in the short term is virtually impossible. Expectations for the long(er) term therefore tend downwards.
Predicting statistics 'structural' tightness on the German pig market. In the past six months, the size of the pig herd decreased again, while this trend is expected to continue. There are also fewer piglets in the pipeline. This makes the chance of a significant price drop in the long term small.
Tense meat market
However, based on the meat market, the chance of a price correction in the short term increases. Slaughterhouses also threaten this. The sow market already suffered a heavy blow this week. For example, Tönnies' sow price fell by €0,05 to €1,27 per kilo. This could be a harbinger for the pig price, the market hears. Things are not going well on the meat market, and that is putting it mildly.
The bellies in particular are under pressure. In the past week the price fell by €0,05 to €0,07. The hams went down in price by €0,02. The necks and shoulders are also under pressure. The meat market is in the red across the board.
DCA Scholarship Price 2.0
Based on the continuing difficult meat market, the DCA Exchange Price 2.0 is unable to avert a reduction, resulting in a correction for week 27. The price of slaughtered pigs is corrected by €0,02 and therefore amounts to €1,74 per kilo. This correction also applies to live pigs, which amount to €1,37 per kilo.