Inside Pigs
Does DCA Scholarship 2.0 tie in with the Internet Exchange?
The Internet Exchange has started a breakout this week. What is the effect of this on the DCA Stock Price 2.0 and what will the listing result in this week?
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In Germany, the Internet fair causes some commotion at the end of the week, after the VEZG listing corrected upwards. Spread over 2 trading days, the auction increased by €0,06 to €1,50 per kilo. The increase is a result of the tight supply in Germany, which is becoming even more of a problem due to the slowdown in growth. The result is that German slaughterhouses suddenly have to do their best again to get the slaughter hooks filled.
Some people attach little value to the increase in the Internet stock exchange, because the shortage has something temporary in it. The weather will probably change from next week. Others are more optimistic.
Meat sales remain difficult
Despite the slowdown in growth, there is no immediate shortage of supply in the Netherlands. However, the wagons do not fill up as easily, because in many places the pigs do not reach slaughter weight. In any case, slaughterhouses will take it easy for the next 2 weeks, which means demand is limited. Slaughterhouses have difficulty getting rid of the parts because the meat processing industry has a holiday period. The worst part is the hams. The demand for attorneys is there and they are therefore increasing in value.
According to Danish Crown, there is a lack of impetus throughout Europe. Sales outside Europe are also lackluster; a trend that actually for months is underway. Volumes are fairly stable, but prices continue to fall.
Stock price up
The hope is that meat sales will improve at the end of August (when the holidays are over). The Dutch slaughterhouses emphasize that the quotations will not increase for the time being. Nevertheless, traders believe they should give the DCA Stock Exchange Price 2.0 a boost. The quotation of slaughtered pigs increases by €0,01 to €1,34 per kilo and appears to be a compromise, as can be concluded from the explanation from DCA Markets. The price of live pigs also increases from €0,01 to €1,07 per kilo.
| DCA Scholarship 2.0 (week 32) | Price range | Number of problems | Average |
| Gender €1,34 (+0,01) per kilo | € 1,33 - € 1,36 | 11 | €1,346 |
| Live €1,07 (+0,01) per kilo | € 1,06 - € 1,09 | 7 | €1,076 |
| Explanation of DCA Markets: Although it is the holiday season and production is geared accordingly, the market still seems to want to get moving. And that has to do with the supply. The warm weather continues to slow down growth. This results in lighter pigs, but also less supply. The latter was able to stabilize the price a few weeks before the holidays. Until the moment that the tension in the market was so great that a reduction was unavoidable. The supply is not large, in the Netherlands it is slightly more suitable, while in Germany the demand is increasing. And that results in a division in the assignments. Things still don't run smoothly in the meat trade, which means that a more limited supply is needed. Slaughterhouses indicate that they do not have to do anything now, which in their view creates a negative mood. In view of the difficult sales, an increase in the DCA Exchange Price 2.0 is not seen as realistic by slaughterhouses. A strong plea to reverse the reduction in the DCA Exchange Price 2.0 in week 30 results in higher declarations. Traders who have pigs on the Stock Exchange feel that they will have to pay the price and have no interest in that. To do justice to both camps, the outcome of the assignments will be halved, with the market having to make it clear in the coming weeks which solution would have been better. |
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