Pig market is sending conflicting signals

The German pig price (VEZG quotation) has been trading at €1,36 per kilo since mid-October and has maintained that level. Yet pressure on pork prices is building up. In the sense that the demand for meat has fallen sharply after Christmas and slaughterhouses are experiencing inconvenience as a result. For example, the stock of hams in Europe is large and other parts are also selling slowly.

The purchasing parties wait and offer back, slaughterhouses say. This trend fits in with the time of year, when meat consumption in Northwestern Europe is relatively low.

Slaughter for the cold store
Nevertheless, the demand from slaughterhouses for slaughter-ready pigs is not disappointing. However, the supply is still quite ample and some traders still have to pass on pigs. Large numbers are also slaughtered in Spain, which puts pressure on the meat market.

Although meat prices are falling, slaughterhouses are keeping up the pace. An explanation for this is the forecast that pork and meat prices will rise later this year attract. The meat parts are therefore now frozen so that they can be delivered later. This idea is based on a smaller pig herd in Germany and sounds that the export to China possible.

This means that pig prices can remain stable. Lowering the pork price would also send a bad signal to purchasing parties; slaughterhouses would be shooting their own fingers. The fact that the demand for (German) pigs is not disappointing is confirmed by the Internet Exchange. The mood indicator rose today, January 18, by €0,02 to €1,42 per kilo; 8 of the 9 lots were traded. The increase is contradictory to the declining margins at slaughterhouses.

DCA Stock price 2.0 does not budge
The price struggles beneath the surface leave the DCA Exchange Price 2.0 cold for the time being. The quotation for slaughtered pigs remains at €1,28 per kilo for slaughtered pigs. The price of live pigs is also unchanged at €1,03 per kilo.

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