Inside: Pig Market
Are slaughterhouses going to lower again?
Despite the fact that the Nord/West committee met the large slaughterhouses in Germany, the price pressure continues. The reason for this? The ample meat stocks and stiff competition on the world market. It is therefore not said that the pig price has reached a bottom.
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Under pressure from the large German slaughterhouses, the North/West Commission reduced the German pork price (the VEZG quotation) this week by €0,03 to €1,42 per kilo. Tönnies and Vion Germany have been using a 'hauspreise' for 2 weeks now and had no intention of closing the difference upwards.
If the German pork price had remained stable, Danish Crown would have sided with the other slaughterhouses. This pressure ultimately became too much for the VEZG listing. The mood that the German slaughterhouses are currently making outweighs it pork offering.
internet exchange
The pigs in Germany are well absorbed by the market and the Internet fair also demonstrated this on Friday, April 20. Although the quotation fell by €0,01 to €1,49 per kilo, almost all lots were traded. The difference between the Internet exchange and the German pig price is still €0,07. Historically, this has been the maximum bandwidth. At first glance, it is therefore not expected that the pig price will fall further in the coming weeks.
Reduction cannot be ruled out
However, a new reduction cannot be ruled out. The German slaughterhouses would like to anchor again. A floor under the pig price is also not a certainty in the Netherlands; especially now there are a few broken slaughter weeks are coming. During full slaughter weeks it has been a challenge for traders to get the pigs placed, during broken slaughter weeks the challenge is even greater.
The situation on the meat market is the reason for the price pressure. The beautiful spring weather in Northwest Europe gives some impetus for the BBQ parts, but cannot avert the negative trend. The means have dropped in price this week. According to slaughterhouses, the sale of hams and the fore-end is also accompanied by difficulty. The ample stocks encourage meat purchasing parties to bid back. A positive exception on the meat market are the attorneys.
If there is less slaughter in the coming weeks, stocks can be reduced. From that point of view, the broken slaughter weeks are not a bad idea. However, there is price pressure outside the European sales market. In China For example, exporters suffer from extra supply from Brazil. The meat trade will have to improve to prevent another reduction in the price of pork.
DCA Stock price stable
The chance of price increases in the short term seems impossible. However, the pig trade in the Netherlands is assuming unchanged pig prices for next week. The DCA Exchange Price 2.0 remains the same at €1,34 per kilo for slaughtered pigs, while the quotation for live pigs remains at €1,07 per kilo.
| DCA Scholarship 2.0 (week 17) | Price range | Number of problems | Average |
| Gender €1,34 (=) per kg | € 1,33 - € 1,35 | 12 | €1,34 |
| Live €1,07 (=) per kg | € 1,05 - € 1,08 | 10 | €1,07 |
| Explanation DCA Markets: There is no shortage of pigs in the Netherlands. The numbers and weights are there, but the number of pigs that will not be placed in the coming week appears to be stabilizing. Although temperatures indicate that it is already summer and the demand for BBQ meat has increased this week, the meat trade has not yet recovered from the dip. It is still a challenge for the meat trade to keep prices for the various components at last week's levels. Exports to China are under a lot of pressure due to the sharp drop in the price of locally produced meat. In addition, Dutch meat sellers all over the world encounter American pork, which is offered for little money. It is hoped that the meat trade can recover in the short term, otherwise a downward adjustment in pig prices seems unavoidable. Nevertheless, the pig trade is heading in the direction of unchanged this week, which is reflected in the DCA Stock Exchange Price 2.0. | |||