Inside Pigs
Pressure on pig price is increasing
The quotations on the pig market have been unchanged for weeks and there is no room for improvement. Due to the difficult sales of meat, the call for reductions is increasing.
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The German pork price (the VEZG quotation) remained unchanged this week for the fourth week in a row. The same trend is visible in the Netherlands and Belgium. In South Europe green markings can be discovered.
In Northwestern Europe the market is trending downwards. The Dutch slaughterhouses indicate that margins are under pressure and that a (major) correction is necessary. The only question is who will take the lead. There is also pressure in Germany, but a tight supply there has a buoyant effect. The Internet Exchange confirmed this on Friday, July 6; the German benchmark increased by €0,01 to €1,50 per kilo, with all 11 lots purchased.
Tight supply in Germany
It has been 5 weeks since German slaughterhouses slaughtered more than 940.000 pigs. Other years the slaughter figure at this time of year was always (well) above that. In the Netherlands, slaughterhouses claim to have enough pigs. Some traders confirm this. Other traders speak of a tight supply, but they also have sales on the German market.
There is an emotional feeling of waiting for the moment when the path downwards is taken; especially now that the holiday period is approaching, because these are (and will remain) difficult weeks. The Dutch pig trade is not yet on the downward path, because the DCA Exchange Price 2.0 remains at €1,38 per kilo for slaughtered pigs. The price of live pigs is unchanged at €1,10 per kilo.
| DCA Scholarship 2.0 (week 28) | Price range | Number of problems | Average |
| Gender €1,38 (approx.) per kilo | € 1,37 - € 1,39 | 14 | €1,381 |
| Live €1,10 (approx.) per kilo | € 1,10 - € 1,10 | 8 | €1,100 |
| Explanation DCA Markets: The question hanging over the market is: how long can the reduction be postponed? The pig market has not been running well for weeks. The hoped-for increase in prices does not materialize. But slaughterhouses have also been sending out signals in recent weeks that meat sales are difficult and slaughterhouses will also have to take a minus for the coming week. It is not surprising that the pressure to reduce prices is increasing, but so far slaughterhouses do not want to pull the hot chestnuts out of the fire for each other. The trade is also reluctant to take the lead in a reduction. Due to the holidays, slaughter programs are adjusted downwards, making it more difficult to place pigs. In summary, there are enough pigs for the coming week, meat sales are difficult, but the DCA Stock Exchange Price 2.0 remains unchanged. |
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