Inside Pigs
Stable DCA Fair Price 2.0 with a very wide range
Falling pig prices have come to an end this week. What is the expectation for the coming weeks?
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The bottom on the pig market has definitely been reached this week. The Dutch slaughterhouses kept the quotation unchanged and the German pork price (VEZG) also remained stable at €1,36 per kilo.
Slaughterhouses no longer exert downward pressure; at the same time, a price increase is not an option. A few stable weeks are likely ahead, as is historically common at this time of year.
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A wide offer
The pig supply in the Netherlands is very extensive, as many pig traders note. Some of them do not receive the offer. Slaughterhouses also report a wide supply and increasing slaughter weights.
The situation on the meat market is described as difficult. However, the quotations for meat parts have found a bottom, although European trade is still 'disrupted' by cheap supply from Belgium. Outside Europe, sales (volume) are fairly stable; however, the prices are described as disappointing.
DCA Stock Exchange Price 2.0 too low?
Some traders say that the DCA Stock Exchange Price 2.0 is too low compared to the slaughterhouse quotations. Others contradict this; Opinions in the market are divided in that regard.
When we compare the DCA Exchange Price 2.0 with the Compaxo quotation (both excluding VAT), this is a difference of €0,07 per kilo. This difference is also the average so far in 2018 (see graph). This means that the DCA Exchange Price 2.0 is in principle not lower than in the previous weeks.
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Although some traders opt for an upward correction, the DCA Exchange Price 2.0 (for slaughtered pigs) for next week remains unchanged at €1,27 per kilo. The price of live pigs is stable at €1,03 per kilo.