Inside Pigs
Does DCA Preorder Stock Price on German Increase?
In recent weeks, pig prices have limited themselves to small increases. However, the month of June is just around the corner and there are signs that German pig prices are going to increase. Can the DCA Scholarship 2.0 already give a little boost?
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
Just like in recent weeks, the pig supply in the Netherlands is normal, but tight in Germany. There will be no cancellation of slaughter days next week and the pigs were promptly requested in Germany. The Internet Exchange rose on Friday, May 31, by €0,05 to €1,93 per kilo, the highest level since 2013. This has stretched the distance to the German pig price to €0,13 per kilo. There is therefore a good chance that the German pork price will increase next week.
Sufficient supply in the Netherlands
The question is: will the Dutch (slaughterhouse) quotations also increase? In recent weeks, the difference between German and Dutch pig prices has grown, because the supply of pigs ready for slaughter in the Netherlands is in line with capacity. The slaughter figure for the past week amounts to 312.000 pigs with an average weight of 98 kilos. This is even the highest number in 10 weeks. The pig supply will also be more than sufficient for next week.
Meat prices move mainly sideways. Japan and China continue to demand large volumes, while sales in Europe are reasonably balanced. The weather improves from June; meat consumption may get a boost from this. For the time being, however, it does not appear that meat prices are creating room for higher pork prices.
Opinions divided
Does the tight German pig supply provide enough incentive to achieve higher prices? The statements at DCA Markets show that Dutch traders are divided over the mutation to be chosen for the DCA Stock Exchange Price 2.0. Some argue for unchanged, others opt for an increase.
The average of the statements nevertheless indicates an increase, causing the price of slaughtered pigs to rise by €0,01 to €1,69 per kilo. However, the price of live pigs remains unchanged at €1,36 per kilo.