Inside: Pig Market
Internet stock exchange proof of better mood
The mood on the pig market in Europe is improving. Several quotations have cautiously increased, although slaughterhouses still seem to be reluctant. The Nord/West committee has again found arguments to argue for an increase.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
With the exception of the Netherlands and Great Britain, the European pig market is stable this week. The British pork price drops by €0,02 to €1,80 per kilo. The Dutch pork price actually increases in the ISN price comparator by €0,02 to €1,58 per kilo. For the rest, the quotations do not show any newsworthy movements.
Fifty-fifty
Yet it is noticeable that the demand for pigs ready for slaughter continues to increase. Indicative of this is the Internet Exchange, which rose by €8 to €0,02 per kilo on Tuesday, August 1,78, with all offered lots in great demand. The Internet Exchange has thus fueled expectations for a higher pig price in Germany. However, it remains to be seen whether the North/West Commission will actually increase the German pork price on Wednesday, August 9. According to Dutch traders, the chance of this happening is 'fifty-fifty'.
The development of the German pig price in 2017 and the 5-year average.
On the one hand, the market offers indications for a higher pig price in Germany. Historically, week 32 is the week that the German pork price picks up again. This after the traditional summer dip (see graph). On the other hand, it may still be a week too early.
For example, German slaughterhouses have shown in recent weeks that they want to disrupt the market with 'hauspreis'. With this thought fresh in its mind, the North/West committee will probably be cautious. The answer will be there on Wednesday afternoon, 14:15 PM.