Downtrend not broken yet

The DCA Scholarship Award 2.0 from July 13 managed to elicit the necessary reactions. A number of traders expected a negative movement, but were not prepared for this to be the case last week. However, it was clear on July 13 that the slaughterhouses were certain of a price reduction in week 29, which was reflected in a minus of €0,04.

The slaughterhouses were remarkably united, as if it was an agreed job. The change of minus €0,03 in Germany was (viewed in that light) not too bad, despite the fact that the intake of pigs is easiest there.

Slaughterhouses in holiday mode
The pressure for next week is reflected, among other things, in reducing the number of pigs that traders are allowed to deliver to the slaughterhouses. That number is 'overruled' by the supply of pigs, despite the fact that they are lightweight (due to the warm weather). In a declining market, the growers want to deliver as much as possible (for fear of further price reductions), while it is precisely then that they need to remain calm. The supply of piglets is said to be pushing the pigs out of the pen. Now that the slaughterhouses are switching to holiday mode, every way out seems blocked.

Although a reduction is not the solution to resolve this impasse, the DCA Exchange Price 2.0 for week 30 cannot escape a reduction. Traders indicate that another correction is necessary for next week. Whether it can be stabilized afterwards will partly depend on the pressure from the pig supply. There is still warm weather in the forecast for a considerable period of time, which will mean that the growth of the pigs will lag behind.

For week 30, the change in the DCA Exchange Price 2.0 for slaughtered pigs amounts to minus €0,02 and for live pigs also to minus €0,02. This brings the prices to €1,33 and €1,06 respectively.