Inside Pigs
Is pig price rubbing against an increase?
Although pig prices have stabilized this week, the mood in the pig market is not bad. However, the road is not yet open for significant increases.
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The stabilizing German pig price (the VEZG quotation) was largely due to the balance between supply and demand. The offer was increased, because on Thursday, May 31, 1 slaughter day was cancelled in the Catholic states. This will no longer be the case in the coming week; it is therefore expected that the demand for pigs will increase. Partly because there has been a slowdown in growth in Europe due to the warm temperatures of recent days.
The fact that the mood on the market is positive was proven by the Internet Exchange on Friday, June 1. That plus (just like Tuesday) by €0,01 to €1,52 per kilo. The difference with the German pig price has thus been stretched to €0,08 per kilo. This suggests an increase is on the way next week. Potentially there is room upwards; after all, the difference with the 5-year average is more than €0,10 per kilo. However, to date, declining meat sales in Asia (China, Hong Kong) have been the limiting factor.
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The difference with the 5-year average remains significant.
Heavy pigs from the market
In the Netherlands, supply and demand are reasonably balanced. The average slaughter weight has been below 4 kilos for 97 weeks in a row. This means that supply (also in the Netherlands) may dry up in the coming weeks, although shortages are not immediately obvious.
Sales on the meat market are currently driven by European demand. For example, the demand for hams has improved; this leads to slightly rising prices. There is a demand for the attorneys. This tasty part of the pig is becoming increasingly popular. However, in order for prices to rise significantly, the by-products will also have to be properly valued. The opposite happens; According to exporters, both prices and volumes in China are under pressure. In principle, there are currently two forces working against each other in the meat market.
Stock market price stable
Based on a tightening pig supply, (moderate) increases are expected in the coming weeks. The DCA Exchange Price 2.0 does not yet respond to this and remains stable at €1,38 per kilo for slaughtered pigs. The price of live pigs remains at €1,10 per kilo.
| DCA Scholarship 2.0 (week 23) | Price range | Number of problems | Average |
| Gender €1,38 (approx.) per kilo | € 1,38 - € 1,40 | 15 | €1,386 |
| Live €1,10 (approx.) per kilo | € 1,10 - € 1,12 | 10 | €1,109 |
| Explanation DCA Markets: The warm weather affects the growth of the pigs. The weights are decreasing, causing the supply of pigs to shrink. The fact that Dutch slaughterers are therefore unable to fill the hooks as planned seems to make little difference. This can be traced back to developments in the meat market. Sellers are still struggling to sell meat, which is under pressure, especially on foreign markets. The Dutch meat market appears to be the most stable. The vulnerability of the meat market means that the pig market benefits from a stable character. For this purpose, the average of the assignments is rounded down. | |||