Inside: Pig Market

Another big plus for DCA Stock Price

16 February 2018 - Wouter Baan

The rapid increase in the pig market is not slowing down yet. Virtually nothing stands in the way of a big plus for the DCA Stock Price, although the wind behind the quotations seems to be easing soon.

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The pig supply in Germany remains scarce. For example, the German pig price (the VEZG quotation) increased again by €14 to €0,06 per kilo on Wednesday afternoon, February 1,46, after the Internet fair had paved the way for this a day earlier. The trend-setting quotation went even further on Friday by rising further to €1,52 per kilo (+€0,02).

Is the market leveling off now?
What is striking is that German slaughterhouses have so far blindly accepted the increases. A few weeks ago, any form of increase was still out of the question, given the 'Hauspreisen' at the time were used. However, this muscle language has disappeared now that pigs ready for slaughter have become scarcer and scarcer in Germany.

An end to the price rally is in sight 

It is now expected that the largest increases in Germany are behind us for the time being. The 4 lots that were not traded on the Internet Exchange on Friday are the result of buyers dropping out. In addition, German fatteners have recently retained pigs, which will soon be put on the market. This could make the tight supply less tight. However, a small increase is considered possible. 

Many massacres in the Netherlands
In the Netherlands, the supply is not necessarily tight. With the exception of week 1, the slaughter figures easily exceed 300.000 pigs every week. Something that almost never happened in previous years. The number of pigs on hooks last week was 308.000, approximately 5% above the 5-year average. However, the average weight is now rapidly decreasing to 97,80 kilos (-0,4 kilos).

Meat market partly follows 
The quotations on the meat market can keep up with the increases on the pork market fairly easily. Parts (procureurs and hams) increase along with the pork prices, while ribs, ribs and bellies also increase. Albeit at a somewhat slower pace. According to some slaughterers, far too slow a pace with regard to the pig price. 

All in all, all signals are green again for the DCA Exhibition Prize 2.0. The quotation for slaughtered pigs therefore increases by €0,06 to €1,38. For live pigs the change amounts to plus €0,05, raising the quotation to €1,10. 

DCA Scholarship 2.0 (week 8) Price range statements Number of problems Average of the problems
Gender €1,38 (+0,06) per kilo € 1,37 - € 1,40 10 €1,38
Live €1,10 (+0,05) per kilo € 1,08 - € 1,11 9 €1,10
Explanation of the listing: The pig market looks positive. The meat market is catching up with some difficulty. No one seems to be in a hurry because of a tight supply of piglets, which makes the pigs heavy. DCA-Noterings maintains the outcome of the assignments. 

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