Inside: Pig Market
Is a Christmas bonus for pigs real?
The ample supply of pigs has been blocking the way to a higher pig price for weeks. Will this continue to be the case now that December is getting closer and closer?
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The pig market has been moving for weeks through a flat landscape, in which not even gentle hills can be found in any fields or roads. The German pork price remained stuck again on Wednesday, November 22, at €1,45 per kilo, a level that has been on the boards for 5 weeks.
Supply and demand are in balance on the German pig market. There will be this weeks lots of sex, but there are enough pigs to fill the hooks. The hooks are also full in the Netherlands. The Internet fair on Friday, November 24 showed no different picture and at €1,48 also remained unchanged compared to the fair on Tuesday, November 21.
Offer remains ample
The expectation is that the supply will remain ample in the coming weeks. Normally, slaughter figures rise steadily until a peak in the last week before Christmas. That will probably be no different this year. In addition, Christmas this year is unfavorable in terms of the number of slaughter days. The market is hearing that some fattening pig farmers will anticipate this in the coming weeks by bringing pigs forward.
Only an acute shortage of specific meat parts, such as hams and hares, can drive an increase. For the time being, there is still no trace of shortages and a stable listing seems the most likely.
Falling US pork price
In the United States (US), pork prices have been falling again since the end of October. This after the Iowa/Minnesota quotation had been on the rise in the previous weeks. On Monday, November 20, the quotation closed at $1,24 per kilo.
The falling price, in combination with a strengthening euro this year, does not make Europe's prospects on the world market any brighter. Also the Rabobank foresees increasing competition from the US in 2018.
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The pork price in the US is under pressure due to ample supply.
Stable Stock Price
The DCA Exchange Price 2.0 is once again stuck at €1,36 per kilo for slaughtered pigs. The price of live pigs also shifted sideways for the fifth week in a row at a level of €1,07 per kilo.