Inside: Pig Market
Pig market weighed down by blood-red meat prices
The downward trend in the Dutch pig market has still not been broken. How does the DCA Stock Price 2.0 react to the red quotations of the slaughterhouses?
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
Various Dutch slaughterhouses (such as Compaxo, Van Rooi and Westfort) have their quotations this week lowered; in contrast to Germany, where the pig price (the VEZG quotation) remained unchanged (€1,42 per kilo). This movement was followed by Tönnies and Westfleisch. Still, the market is not certain that German quotes will remain unchanged in the coming weeks. If the meat market does not improve, cuts are likely.
Speculating on possible reductions does not appear to be initiated by the Internet stock exchange. The quotation on Friday, April 26, kept the quotation unchanged at €1,47. All offered lots, a total of 13 pieces, were traded.
Pig supply remains ample
The pig supply is described as ample for next week. Once again because fewer pigs are brought to Germany, as there is no slaughter there on Tuesday, May 1 (Labor Day). Slaughterhouses have been busy with pigs for weeks. This despite the fact that the slaughter pace is high, witness the slaughter figures.
Volume loss in China
Danish Crown says that it is difficult to keep meat sales in China the same (in terms of volumes). According to the slaughterhouse, this will only work if price concessions are made. Other slaughterhouses are making similar noises. This means that the much-vaunted exports to China are in a negative spiral that is difficult to break.
The DCA Exchange Price 2.0 cannot avoid a reduction for week 18. In the explanatory notes to the listing, DCA-Markten mentions that the changes for the pigs slaughtered for week 18 vary greatly, which influenced the number of entries that remained. For slaughtered pigs the price is €1,31, which means a minus of €0,03. For live pigs, the downward adjustment is €0,02, making the price €1,05.
| DCA Scholarship 2.0 (week 18) | Price range | Number of problems | Average |
| Gender €1,31 (-€0,03) per kilo | € 1,30 - € 1,32 | 6 | €1,308 |
| Live €1,05 (-€0,02) per kilo | € 1,04 - € 1,07 | 7 | €1,057 |
| Explanation DCA Markets: The pig market is in a difficult phase. The difficulty in selling meat is reason for slaughterers to be gloomy. This is not going well, and significant price reductions have to be accepted. The hams in particular are suffering. The supply of pigs is more than sufficient (due to the broken weeks). However, this does not seem to be increasing. Although Germany recorded unchanged, this is said to have been done with May 1 in mind rather than the market giving rise to this. Signals that Germany will correct downwards in the coming week are increasing. The Netherlands will not lag behind, meaning that a further correction in pig prices is in the offing. Due to the wide spread in declarations among the slaughtered pigs, a relatively large number of declarations were missed before week 18. | |||