Inside: Pig Market
Pig market doesn't know how to choose a direction
Around the turn of the week (from week 33 to week 34), the supply of pigs was described as broad by the Dutch slaughterhouses. The slaughter programs of week 34 therefore required little effort to get the desired number of pigs on the hooks.
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Now that the holidays are over in the center of the Netherlands and the south can go back to school next week, the meat processors are also coming back to life. This means that production is being scaled up, which requires more pigs. There doesn't seem to be a shortage of that at the moment.
Nevertheless, the trade speaks of a reasonable decrease in pigs on average. What is currently lacking in the market is movement in the pig price. It was hoped that an upward trend would emerge in pig prices towards the end of the holidays. After all, the pig market is still struggling with the aftermath of last spring's piglet shortage.
Decent selection of pigs
Although some believe that 'the less piglet story' falls under the category of 'fake news', that is far from an accurate reading. Dutch slaughterhouses have noticed a considerable supply of pigs in recent weeks, which may only be explained by less sales of pigs to Germany. The Germans have managed to make themselves less popular with the bear story and the adjustment of payment terms, which is why traders prefer to keep the pigs in the Netherlands.
The Internet Exchange
This week, pig prices from Dutch slaughterhouses remained unchanged. There was also no movement in prices in Germany. The listing of the Internet Exchange this week was surprising. On Tuesday, August 22, this was reduced by €0,01 to €1,75, before rising again by €0,03 to €1,78 on Friday.
Of the 11 lots offered, 10 were traded. This action will attempt to loosen the pig market, but there are no indications of this yet from meat sales.
The plus could indicate that the German pork market could rise in the coming week. Whether that will happen remains to be seen. In recent weeks, it has not been possible to convert a positive expectation into a rising price and the sounds for the coming week are far from clear, with there still being forces in the market that want the market to go down.
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The supply of pigs for the coming week still seems to be on the large side, but not greater than last week. It is expected that the planning will eventually be taken up by the Dutch slaughterers, although this will require a lot of trial and error. On balance, this results in unchanged prices for week 35 for the DCA Exchange Price 2.0 for slaughtered and live pigs, at €1,62 and €1,28 per kilo respectively.