Inside: Pig Market
Pig farmer wants to deliver maximum forward
In the pig market, supply and demand do not match. While pig farmers want to deliver at full capacity, slaughterhouses are in no rush to slaughter. This results in a significant minus for the DCA Stock Price 2.0.
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Although Easter is rapidly approaching, this currently offers little support to the pork price. For example, the Internet Exchange closed again on Friday, March 16, although the correction from €0,01 to €1,49 per kilo is small. Yet there is a lot of negativity in the market; especially in the Netherlands. Since the pigs still be more than adequate, many pig farmers can easily deliver in advance. This is done a lot.
There is moderate confidence in the market in the pig price, now that there is a lot of voting going on. Those who have completed sales for next week are the exception rather than the rule. Often there is no slaughter hook available for 10% to 15% of the supply. Fattening pig farmers are in an extra hurry to deliver because there will be 2 slaughter day in 1 weeks' time (Easter Monday). The idea is: the pig price can only decline.
Bacon sales are disappointing
The falling pork price in recent weeks is encouraging the meat trade to adopt a wait-and-see attitude. This also happens, because many parts are bid back. In addition, bacon exports to the United Kingdom (UK) are not going anywhere. The first export figures confirm the sounds that exporters are making. For example, British bacon imports fell by no less than 29% to 14.700 tonnes in January. The UK's largest bacon suppliers (Netherlands, Germany and Denmark) share this loss. British imports of other meat parts also fell significantly in volume.
It is striking that Danish Crown speaks about a noticeable Easter question. According to export manager Søren Tinggaard, sales of hams and the fore-end are doing well. The slaughterhouse has even reduced the slaughter weight to get the necessary supply on the hooks. The slaughterhouse also reports good sales in Japan and China. A side note about this situation is that Danish Crown has been having trouble getting the hooks for some time to fill up. The supply is also not a nuisance in Spain and France.
What is Germany doing?
Dutch slaughterhouses do not see the image that Danish Crown paints reflected in their sales. They talk about a competitive market, where meat volumes get in each other's way. Therefore, there is little rush to slaughter. In contrast to the Netherlands (where the pressure is increasing), peace is returning in Germany. This now that the 'Hauspreise' is a thing of the past. When the Internet stock exchange stabilizes in the coming week, a stable German pig price (the VEZG quotation) at €1,45 per kilo is likely. This could dampen the supply drive of Dutch pig farmers somewhat.
However, this scenario has yet to materialize. For now, the DCA Exchange Price 2.0 remains nothing but a reduction from €0,03 to €1,37 per kilo for slaughtered pigs. The price of live pigs drops from €0,02 to €1,09 per kilo.
| DCA Scholarship 2.0 (week 12) | Price range statements | Number of problems | Average of the problems |
| Gender €1,37 (-0,03) per kilo | € 1,35 - € 1,38 | 18 | €1,37 |
| Live €1,09 (-0,02) per kilo | € 1,08 - € 1,10 | 11 | €1,09 |
| Explanation DCA Markets: The pig market has entered a difficult phase. The upcoming holidays do not seem to change this. Pig farmers are sorting in advance of the absence of a slaughter day and offering plenty of pigs. Meat sales are going against the wind, causing slaughterhouses to reduce their capacity. On balance, the pressure on the market is increasing, as a result of which the quotation must be adjusted downwards. | |||
DCA Knowledge Session
Come to a knowledge session in Arnhem on Monday evening, March 26, about the DCA BestPigletPrice and the DCA Beursprijs 2.0. During this evening, Jean-Marie van Oort (director Topigs Norsvin) will speak about trends in genetics, among other things. This evening is led by Edwin Burgers (director of DCA Group). Sign up here.