Inside: Pig Market
Despite 'push market', DCA Stock Price 2.0 remains stable
Can the pig market survive the penultimate week before Easter? That is the question on the European pig market this week. Read here why the answer is yes. Whether the same question can be answered with yes again next week remains to be seen.
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As the week progressed, the situation on the German pig market visibly improved. At the beginning of the week, the Internet Exchange increased €0,02 to €1,47 per kilo. Despite the narrow bandwidth, the German pig price (the VEZG quotation) remained stable at €1,45 per kilo. The North/West committee thus countered the downward pressure, which market leader Tönnies is said to have exercised.
German slaughter figure significantly higher
The market can hold up because other German slaughterhouses take in the pigs 'fine'. They are therefore not looking for further reductions. This is also reflected in the Internet fair. On Friday, March 23, to the surprise of many, he regained the loss of Tuesday, March 20 (+€0,02 to €1,49 per kilo). What probably also plays a role is that a large number of pigs were slaughtered last week (week 11). As a result, the supply has dried up somewhat.
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It is the third time that the German slaughter figure has exceeded the million mark again in 2018.
The German slaughter figure rose by 1% in 5 week to 1.023.945 heads; with an average slaughter weight of 98,07 kilos. This year the slaughter figure has never been so high above the 5-year average (+2,1%). Despite the trend that supply at (German) slaughterhouses is more often fixed (concepts), there are still flexible delivery options.
This strongly determines the functioning of the market in the short term. Tönnies' enthusiasm was also reflected in the sow prize. This decreased by €0,03 to €0,93 per kilo. The quotation of Tijs Haarle fell by €0,02 to €1,19 per kilo (slaughtered).
Situation in the Netherlands
In the Netherlands, slaughterhouses can easily fill their hooks. This is not bad for the slaughterhouses, in view of Easter deliveries to retailers (Better Leven). Apart from the Easter question, people here and there complain about it poor sales opportunities; both in Europe and Asia. A Chinese import tax of 25% on american pork could improve European sales opportunities. However, it remains to be seen whether the levy will actually be implemented.
For now, the Dutch pig market remains a 'push market'. However, the DCA Exchange Price 2.0 may stabilize at €1,37 per kilo for slaughtered pigs until next week. The price of live pigs remains stuck at €1,09 per kilo. It is still difficult to say how the situation will develop after Easter. The cancellation of a slaughter day (Easter Monday) and Tönnies' mood-making means that the ice under the quotations is thin.
| DCA Scholarship 2.0 (week 13) | Price range statements | Number of problems | Average of the problems |
| Gender €1,37 (approx.) per kilo | € 1,36 - € 1,38 | 19 | €1,37 |
| Live €1,09 (approx.) per kilo | € 1,09 - € 1,10 | 11 | €1,09 |
| Explanation DCA Markets: The holidays do not bring a positive mood. There has been a negative price change on a number of components. The supply of pigs in the Netherlands is very large, which means that traders are unable to place the quantity on offer. For next week, people are anxiously awaiting what Germany will do. A downward mutation is in the offing. If that expectation comes true, more pressure is expected. Stabilization is therefore the highest achievable. | |||
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. Jean-Marie van Oort will speak during this evening (director Topigs Norsvin) including trends in genetics. Edwin Burgers (director DCA Group) is in charge of the evening. Sign up here.