Inside Pigs
Attempt to escape from pig market failed
To speak in cycling terms: the breakaway attempt on the pig market has failed. Will this still happen?
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Pig prices in Northwestern Europe are more stable than expected and the Internet stock exchange in Germany is also back to square one. Spread over 2 days, the indicator lost €0,05 to €1,41 per kilo.
No price increases
German slaughterhouses are not raising prices to move, because under pressure from Vion and Tönnies, the German pig price (the VEZG quotation) remained at €7 per kilo on Wednesday afternoon, November 1,36. At the beginning of the week, an increase of up to perhaps €0,05 was expected.
Traders and pig farmers experience the unchanged price as a setback and as a result the optimistic mood in the run-up to December has partly disappeared.
Rising weights
De slaughter figures have been high for weeks, with the average slaughter weight continuing to increase. Last week, 315.000 pigs were slaughtered, with an average weight of 97 kilos. Historically, slaughter figures can be expected to continue to reach such levels until Christmas.
The traders report that they are getting better placements for the pigs than a few weeks ago. This indicates smoother meat sales. The slaughterhouses report that sales of the various parts (forehead and hams) are going well, but at the same time the supply in Europe is ample and that dampens price increases.
If the slaughterhouses try to force price increases, this will probably lead to cancellations. This explains why pork prices are locked down.
Lower Stock Price
Historically speaking, it is quite possible that pig prices will still pick up in the coming weeks, although signals pointing to this have been erased. The DCA Exchange Price 2.0 partly corrects the increase last week and quotes €1,28 per kilo (-€0,01) for slaughtered pigs. The price of live pigs also corrects by €0,01, bringing it to €1,03 per kilo.