Inside: Pig Market
Heaviest pigs on the market, but still busy
In the pig market, the planning is in favor of the slaughterhouses. The slaughter rate is slower at Easter, which means that the supply increases quickly. How's the mood?
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The first quarter of 2018 was not exactly boring. After a difficult start, prices picked up unexpectedly quickly. These price increases continued until the end of February. After that, the market entered a negative mood and this still prevails today.
German slaughterhouses have been voting for weeks, but last Wednesday they followed the German pig price (the VEZG quotation), which remained stable (€1,45 per kilo). The placement space at German slaughterhouses varies somewhat, but is not necessarily tight.
Related rust
This ensures that there is also relative peace on the Dutch pig market with unchanged quotations. Nevertheless, a number of pig traders are opting for (small) reductions for next week. They see few positive indications and expect the German pork price to drop after Easter. Others are more positive.
Everyone talks about many pigs that are difficult to place at Dutch slaughterhouses. This makes sense, because there is no slaughter on Easter Monday (Monday, April 2).
Lots of sex in Germany
The German slaughterhouses have gotten rid of many pigs in the past 2 weeks. For example, last week there were 1.032.503 pigs on the hooks, which is the highest number of 2018 so far. This is clearly against the seasonal trend. The decrease in the average slaughter weight (-0,4 to 97,67 kilos) signals that pig farmers have delivered ahead of time, which means the pressure is now somewhat off.
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There has been a lot of supply in Germany in the past 2 weeks.
In the Netherlands, more than 11 pigs have been slaughtered for 300.000 weeks in a row. With 316.000 slaughters (last week), the slaughter figure was no less than 8% above the 5-year average. The fact that the heaviest pigs are on the market is proven by the average slaughter weight (97,7 kilos), which remained below 98 kilos for the third week in a row.
Stock market price remains stable
Despite the fact that the declarations (see table) are lower than last week, the DCA Exchange Price 2.0 for slaughtered pigs remains stable at €1,37 per kilo. The price of live pigs remains at €1,09 per kilo. This means that the DCA Exchange Price 2.0 will start unchanged in the second quarter. What this quarter will bring is still uncertain.
| DCA Scholarship Award 2.0 (week 14) | | Price range statements | | Number of assignments | | Average of the problems |
| Gender €1,37 (approx.) per kilo | € 1,35 - € 1,37 | 13 | €1,37 |
| Live €1,09 (approx.) per kilo | € 1,07 - € 1,09 | 9 | €1,09 |
| Explanation DCA Markets: EThere is a wide supply of pigs. Shifting has been the result for traders for a number of weeks. Dutch slaughterhouses have not included any room in their slaughter programs to compensate for the loss due to Easter Monday. However, Germany offers a limited solution for the purchase of pigs for a number of traders. The pork trade is under pressure, as are the margins of the slaughterhouses. On balance, the mood is becoming more negative. A reduction in the pig price is on the horizon, but will not be implemented until next week. | |||