Inside Pigs
Price rally on pig market nears end
The surge in pig prices over the past week is almost unprecedented. However, the end of that climb is now in sight, although there is still plenty of time left to climb to higher price levels later this year.
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The demand for pigs ready for slaughter was extremely good this week and the supply was tight. Also the slaughter figures last week already indicate this. The German pig price (the VEZG quotation) has risen by €3 in 0,30 weeks to €1,70 per kilo, which is the highest price level since at least 2005 (data from before that year is not available). Prices are expected to level off in the coming weeks.
The Internet Exchange no longer made an outlier on Friday April 5, but increased by €0,02 to €1,79 per kilo. Based on this, it is expected that the German pork price may record a small increase next week.
Nervous meat market
The situation on the meat market is especially hectic and nervous. Slaughterhouses try to conclude short-term sales contracts, because they have little insight into what pig prices will do in the medium term. In principle, they have been able to reasonably translate the increases in recent weeks into meat prices, but that did not go smoothly everywhere.
There will be less shortage on the Dutch pig market next week. Various slaughterhouses indicate that they are (very) easy to obtain pigs. Teachers are also more forthcoming in making offers. These signals indicate that the price rally has reached a ceiling for now. At DCA Markets, the DCA Exchange Price 2.0 for slaughtered pigs increases by €0,08 to €1,62 per kilo. The price of live pigs increases by €0,07 to €1,32 per kilo.