DCA Stock price cut after a bad week

The German pork price fell sharply on Wednesday, September 13, falling by €0,08 to €1,62 per kilo, after Vion was the first to drop its price on Monday, September 11. A reduction was unavoidable, but this was a rude awakening.

What the German pig market will end up in is still uncertain. The expectation is that German slaughterhouses want to return to €1,55 per kilo. Whether this step will be taken in 1 or 2 weeks remains to be seen.

Text continues below the chart.The German pork price fell below the 5-year average for the first time this week. 

Little purchasing interest
The Internet Exchange fell by €0,07 to €1,63 per kilo on Friday. There was not much buying interest. Ultimately, only 270 of the 2.850 pigs offered were traded, or 2 of the 17 lots. This gives little perspective for next Tuesday's auction.

Slaughterhouses seize the opportunity
Despite the fact that there is a wide supply, pigs are still reasonably taken up in the Netherlands. There were hanging last week quite a few pigs were hooked and a lot was slaughtered this week as well. Pigs can also be delivered on Saturdays. Slaughterhouses would not do this if money had to be paid, some traders argue. Others call it a pig's plug and they have a hard time getting rid of the pigs. 

Friend and foe agree that slaughterhouses are picking up the momentum and preparing pork prices for the autumn and winter months. It cannot be denied that the meat market is weak. For example, the price of hams, foreparts and bellies all dropped by a few cents this week. This logically puts pressure on the pig price.

However, as soon as the pigs become cheaper, there will be renewed purchasing interest. Thus lives the hope, which is based on the approaching Oktoberfest in Germany. Slaughterhouses are therefore taking their chance now, as happens more often every year. Ultimately, the pig price in Germany determines the price for other European countries. This is because German slaughterhouses store the most volumes and thus leave their mark on the meat market.  

Solid correction 
Because the German pig price is expected to drop to €1,55 per kilo, the DCA Stock Exchange price cannot escape a correction. A very significant correction can be said. The price of slaughtered pigs drops by €0,10 to €1,52 per kilo. The idea behind many entries is: short pain is better than long pain. The price of live pigs also drops by €0,08 to €1,20 per kilo.