Inside Pigs
Is DCA Scholarship 2.0 too tight or not?
A lively discussion has arisen in the pig market. Opinions differ on this: is the DCA Scholarship 2.0 too tight or not?
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Friction has arisen regarding the DCA Stock Exchange Price 2.0: in the previous week the quotation for slaughtered pigs increased by €0,06 to €1,47 per kilo. This movement has only been partly followed by the slaughterhouses. For example, the quotations at Van Rooi (+€0,02) and Vion, Compaxo and Westfort increased by +€0,04. Vion did apply a weekly surcharge of 1 cent, which actually increased it by +€0,05.
Since the first week of August, the DCA Stock Exchange Price 2.0 has risen somewhat faster than the Dutch slaughterhouses. According to some, this has placed the listing too tightly in the market. They opt for a correction of about €0,02. Others argue wholeheartedly for unchanged. A reduction would send the wrong signal. In countries such as Spain and Italy, this could give rise to negative sentiment. It would also play into the hands of meat purchasing parties.
Lots of options in the Netherlands
Based on the pig supply in Germany, a reduction is not appropriate. The slaughter figures show that there has been considerably less slaughter there in recent weeks and the supply is still not ample. The quotations on the German market are solid. The Internet Fair demonstrated this this week. On both trading days the price remained at €1,60 per kilo. In line with this, it also supports the German pork price (VEZG quotation: €1,55 per kilo) with a firm lower limit.
All the more so because meat prices have been able to keep up with the pace of pork prices reasonably well. The parts have significantly increased in value across the full width of the carcass. However, the revival has created some uncertainty in the market. For example, selling hams was more difficult. The demand for bellies, on the other hand, is better.
DCA Scholarship Award 2.0 remains in place
In the Netherlands, the supply is described as wide to very wide, and it is a challenge to place the pigs. However, there is enough support to keep the DCA Exchange Price 2.0 the same at €1,47 per kilo for slaughtered pigs. The price of live pigs remains at €1,18 per kilo.
| DCA Scholarship 2.0 (week 35) | Price range | Number of problems | Average |
| Gender €1,47 (=) per kilo | € 1,45 - € 1,47 | 11 | €1,463 |
| Live €1,18 (=) per kilo | € 1,16 - € 1,19 | 12 | €1,174 |
| Explanation of DCA Markets: It's a difficult week when it comes to pork prices. The holidays are now coming to an end, which means meat production and processing are gaining momentum. However, on the other hand, the growth of the pigs has slowed down due to the heat of recent weeks. Due to the 'more normal' temperatures, we are catching up and supply is increasing. Higher production and more supply should match, but they don't. This is because meat sales throw a spanner in the works. The parts in the front part in particular are difficult to install, which puts a dampener on the meat sellers. Fatteners' confidence in a stable pig price is minimal, causing supply to increase. In addition, the increase in the DCA BestPigletPrice pushes the pigs out of the pen. Farmers do not rule out a further increase in the price of piglets and want to make it easier to impose. As a result, the pig supply is growing. Signals are coming from the market that the DCA Exchange Price 2.0 is (too) tight. For the 1, it means that you must be able to indicate that you will not reduce because the DCA Exchange Price 2.0 is too tight. For others, the DCA Scholarship Award 2.0 must remain unchanged for that very reason. The slaughterhouses continue to indicate that sales have not been able to repair the gap in returns. However, it has become smaller. If the most votes count on Friday, August 24 (and that is different from the averaging of the entries), then it is estimated that a correction will send the wrong signals and will not benefit the sale of meat. As a result, unchanged is the most logical choice, knowing that a tight DCA Exchange Price 2.0 is a problem. |
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