Inside Pigs
Pig market bottom seems in sight
The pig market is becoming more and more accustomed to the fact that African swine fever has broken out in Belgium. The price pressure thus seems to be easing, although the DCA Stock Price 2.0 cannot avoid a correction.
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In Germany, a correlation has again emerged this week between the slaughterhouse quotations (Tönnies, Vion and Westfleisch) and the German pig price (the VEZG quotation). The quotations have converged at a level of €1,36 per kilo. This seems to be the bottom for now. This idea was confirmed on Friday, October 12, by the Internet Exchange, which remained stable at €1,41 per kilo, with all lots selling smoothly.
Offer remains ample
This does not alter the fact that the pig supply in Germany is still ample. In the Netherlands, and elsewhere in Europe, the situation is not much different. The slaughter figures show that Dutch slaughterhouses are moving at a good pace. At 305.000 slaughters, the slaughter figure was slightly below last year's level. Nevertheless, it is a high number compared to previous years.
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The German slaughter figure (852.104) dipped last week due to the cancellation of a slaughter day. The effects of this are still noticeable this week, as German slaughterhouses report that slaughter weights are significantly higher this week.
The meat market is still labeled as a 'push market'. There is a lot of pressure from Belgium and Spain. However, parties in the market are becoming increasingly accustomed to the new reality surrounding the outbreak of African swine fever in Belgium. The pressure from Belgium will probably remain high in the coming weeks. This means that higher meat prices are not in sight. However, the price pressure for most parts is subsiding somewhat, creating a certain form of stability.
DCA Stock price 2.0 down
The DCA Stock Price 2.0 decreased by 2 cents last week. The slaughterhouse quotations in the Netherlands also followed this change. But the balance between the slaughterhouse quotations on the one hand and the DCA Stock Exchange Price 2.0 on the other does not seem to be there yet. That is why traders opt for a reduction at DCA-Markets. The price of slaughtered pigs drops by €0,02 to €1,27 per kilo. The price of live pigs drops by €0,01 to €1,03 per kilo.