Sow market forerunner of the pig price?

Based on a tight pig supply and the necessary resistance from the southern pig farmers in Germany, Tönnies increased the pig price by €0,03 to €1,70 per kilo. This means that the last wrinkles in the German pig market have been ironed out and we can cautiously look upwards again.

The Internet Exchange responded immediately on Friday by increasing by 2 cents to €1,76 per kilo. This has created a tight bandwidth with the German pig price, which has been at €1,70 per kilo for several weeks. If the Internet stock market rises again on Tuesday, it would fuel serious hopes for a higher Vereinigungspreis next Wednesday.

Offer in Germany
It is not yet certain whether the German pork price can increase next week. Especially now that the market has just been confronted with a 'Hauspreis' for 3 weeks. However, it is not ruled out either. This is because the pig supply in Germany is barely sufficient, various sources report. In the Netherlands, the pig supply is flowing well. In 'normal' slaughter weeks, outside the holidays, the supply would probably be described as tight.

Meat market is slowly picking up
The situation on the meat market shows some improvement. For example, slaughterhouses report that there are no longer any meat surpluses. In addition, the south of Europe is still interested in purchasing, due to the influx of tourists. The Greeks, for example, celebrate August 15 'Assumption of Mary' and that creates extra demand. On balance, it can be said that the negative tenor on the meat market is over. For example, the push-off of shoulders showed some improvement this week. Exports outside Europe, on the other hand, are proving difficult. So there is still a lack of concrete impulses.

On balance, the mood on the pig market is mainly positive. For example, Tijs Haarle's sow price increased again this week by €0,01, both for live and sex. Tönnies even increased the sow price by €0,02 cents. This development on the sow market could well be the precursor for pig prices. Especially because the meat processing industry will produce more intensively again from week 33, which will create more demand.

DCA Scholarship Price 2.0
Despite the fact that there are different opinions about whether or not to implement an increase before week 32, the benefit of the doubt is given to a step forward. The positive undertone (as if something is about to happen soon) that is felt in the market is supportive. The increase for both live and slaughtered pigs amounts to €0,02, causing the DCA Exchange Price 2.0 to rise to €1,28 for live and €1,62 for slaughtered pigs.