Inside: Pig Market
Ham sales let DCA share price 2.0 fall
The sharp fall in the German pig price has not helped the mood. There are enough pigs ready for slaughter in Europe, while meat prices are sliding to lower levels. The DCA Stock Price 2.0 is therefore again mutating into the red.
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Under pressure from the large slaughterhouses in Germany, the German pork price (the VEZG quotation) fell sharply this week. The Internet Exchange corrected considerably as a result; the market indicator fell by €4 to €0,06 per kilo on Friday, May 1,41. Of the 14 lots offered, 11 lots have been traded. According to the ISN (the German interest group), the unexpected red listings are a bitter pill for pig farmers.
There will be more than enough pigs in Europe next week due to Ascension Day. Yet many traders get the pigs placed reasonably well considering the circumstances. The sales opportunities in Germany are also not disappointing. A possible explanation for this may be the sharp correction in the pig price, which increases the willingness to slaughter.
Hams keep pressing
However, it is the situation on the meat market that is dire. Danish Crown also complains about difficult sales opportunities. Nevertheless, the Danish slaughter group has plans to... price for the next 2 weeks. The problem is mainly with the sale of hams and half carcasses. According to Danish Crown, the price of hams is at abnormally low levels for this time of year.
On the Italian stock exchange, prices fell this week by €0,03 to €0,06 per kilo. The hams (12 kilos) are now traded there for €4,50 per kilo. In Western Europe the changes vary by -€0,02 to -€0,07 per kilo. Since hams are a heavyweight in the carcass, Dutch slaughterhouses say they are feeling the significant price drops. Apparently the asparagus season has little influence on demand. In addition, prices for the sale of slaughter by-products to China have fallen further.
Sales to Japan, on the other hand, are continuing well. Recent export figures show that the Netherlands is gaining ground there. Although Japanese imports shrank by -2,4% to 77.800 tonnes in March, the Dutch volume increased by 13,1% to 2.385 tonnes.
DCA Scholarship Price 2.0
All in all, the mood on the pig market is still too fragile for price maintenance. The Dutch pig trade is therefore pushing for a further reduction. The DCA Exchange Price 2.0 decreases for slaughtered pigs by €0,03 to €1,28 per kilo. The quotation for live pigs drops by €0,02 and amounts to €1,03 per kilo. A positive starting point is that the weather in Northwest Europe will be very nice in the coming days. This may offer the prospect of stabilizing prices.
| DCA Scholarship 2.0 (week 19) | Price range | Number of problems | Average |
| Gender €1,28 (-€0,03) per kilo | € 1,27 - € 1,29 | 11 | €1,284 |
| Live €1,03 (-€0,02) per kilo | € 1,01 - € 1,03 | 10 | €1,026 |
| Explanation DCA Markets: The pig market is still gloomy due to the difficult meat market. The meat trade must be stopped both in and outside Europe. The supply of pigs is wide due to Ascension Day. If there had been a full slaughter week, the supply of pigs in the Netherlands would have been in balance with the purchase. In Germany, pigs are being taken in smoothly for the coming week, despite the cancellation of a slaughter day. It is therefore surprising that this week in Germany there was a pork price change of 5 cents. Meat sales are again at a minimum for the coming week. Stabilization of the DCA Stock Exchange Price 2.0 is therefore not yet on the agenda this week. It is expected that Germany will be able to give this signal in the coming week. | |||