Inside Pigs
Mood on pig market remains depressed
Apparently the pig market is showing signs of stability this week. In reality, the situation is more complex. How does the DCA Scholarship 2.0 react to this?
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Given the uncertainty at play, the unchanged change in the German pig price (the VEZG quotation) can definitely be seen as a windfall. At the beginning of the week, this was not taken into account. Yet the stability hangs together like loose sand. The lectures that traders and slaughterhouses give about the market do not always tally with each other.
One gets the pigs well placed and even argues for a small raise. For others, it is fitting and measuring to eliminate the offer. Another has to move pigs.
Slaughter numbers up
Statistics show that the number of slaughters is steadily increasing. In the Netherlands, 313.000 pigs were hanging from the hooks last week, with an average weight of 95,20 kilos. Compared to a year earlier, this is 4,5% more slaughter and a weight loss of 1 kilo. The German slaughter figure came to 1.003.853 pigs with an average weight of 97,62 kilos.
There will be one day less slaughter in Germany next week, due to the celebration of the Day of Unity (October 3). It is striking that traders who are oriented towards Germany do not notice much hindrance from this. However, the chance is considered realistic that further reductions will follow in Germany. This is despite the fact that the Internet exchange rose by €28 on Friday 0,03 September to €1,43 per kilo, extending the distance with the German pork rice (€1,40) again.
Meat market remains tense
The fear of cuts is fueled by the situation on the meat market. The Belgian slaughterhouses offer the meat at dumping prices, which of course has a disruptive effect. In addition, German and French slaughterhouses do everything they can to keep stocks limited. A possible AVP outbreak entails an enormous loss of value. The failure of a slaughter day could dampen the supply pressure on the meat market, although that remains to be seen.
DCA Scholarship price 2.0 equal
All in all, the majority of the contributors at DCA-Markets argue in favor of an unchanged DCA Stock Price 2.0. This means that the quotation for slaughtered pigs remains at €1,31 per kilo and the quotation for live pigs at €1,06 per kilo.