DCA Stock price stable, despite declining meat market

In Germany, the pig market more or less reached a bottom this week. The German pig price fell by €0,04 to €1,30 per kilo, but that reduction had been calculated in advance. The Internet Exchange did not move this week and recorded twice: €2 per kilo. On Friday, January 1,34, 19 of the 11 games were administered. In the Netherlands, all quotations (-€13) have fallen along with it time of the German slaughterhouses.

(Text continues below the chart)The historic increase in the German pig price (from week 4) still seems far away this year. 

In (South) Germany, the supply is still 10 to 15% greater than the slaughter capacity. This is also being discussed in other European countries, such as France and Denmark extensive offering.

Meat prices falling
The price pressure on the meat market has not yet abated. The front and middle parts have again fallen by a few cents. A starting point is that the hams did stabilize, while this component still saw the most price pressure last week. Purchasing parties exert enormous pressure on slaughterhouses in order to purchase meat cheaper. They are helped in this by some German slaughterhouses that do not want to stockpile.

They prefer to sell the meat without a margin rather than building up stocks. This idea is stimulated by the threat of African swine fever from Poland to Germany. Large stocks, in the event of a possible outbreak, would be disastrous.

DCA Scholarship price unchanged
In the Netherlands, traders find it difficult to achieve sales. Nevertheless, the worst pressure on pig supply appears to be easing, although the market will need the coming weeks to get all the supply placed. The DCA Exchange Price 2.0 can therefore stabilize this week at €1,22 per kilo for the slaughtered pigs. The price of live pigs remains at €0,96 per kilo. Given the falling meat prices, the bottom under the pig market has not yet hardened. Slaughterhouses are therefore voting with another correction.