Slaughterhouses and ISN are dimming about price

The ISN (the representative body of German pig farmers) says it is displeased about the 'House price' at the slaughterhouses in Germany (Tönnies and Vion Germany). The pig supply is not a disruptor in the market. This is because many pigs have already been slaughtered in the weeks before Easter. This motivation is consistent with the opinion of German and Dutch pig traders; they say that the pigs in Germany are not necessarily difficult to place.

This is also evident from the Internet Exchange, which did not respond to the sentiment on April 6 and remained the same at €1,51 per kilo. The fact that 11 of the 12 lots have been traded shows good demand.

Many pigs in the Netherlands
In contrast to Germany, pigs are very difficult to place at Dutch slaughterhouses. This is partly because there was one day less slaughter this week. The offer is therefore experienced as a 'prop'. Pig farmers continue to make generous supply, because they are not confident about further price developments in April.

The difficult meat sales also do not promote the flow of pig supply. The hams and the middle part in particular are under pressure. Meat prices in the Netherlands did not survive the week unscathed either. This may change when spring weather finally arrives; stimulate does the weather forecast however, only to a limited extent.

Chinese freeze
Despite the fact that European slaughterhouses have recently gained a competitive advantage over their American colleagues, exports to China remain under pressure. This is because the pork price in China is under pressure. The demand in China for pigs ready for slaughter is limited, while there is ample supply with high weights. A Chinese analyst writes that slaughterhouses are stockpiling and freezing a lot of meat. This is not conducive to a speedy price recovery.  

Who will correct?  
The question now is: who in Germany will implement a price correction next week. While one person thinks that the VEZG quotation will creep towards the slaughterhouse quotations, the other suspects that slaughterhouses will go back to €1,45 per kilo. Opinions in the market are divided, although the majority thinks that the slaughterhouses will ultimately win the day.

The majority of the Dutch pig trade is calling for a correction of the DCA Exchange Price 2.0. The quotation for slaughtered pigs drops by €0,03 to €1,34 per kilo; the price of live pigs amounts to €1,07 per kilo (-€0,02).