Inside Pigs
How does Stock Price react to German Hauspreise?
A jumble of price movements was visible in the pig market this week. Where Dutch slaughterhouses unexpectedly increased, several German slaughterhouses blocked a plus. How does the DCA Scholarship 2.0 react to this?
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It was hectic everywhere. While the DCA Exchange Price 2.0 had difficulty squeezing out an increase of €0,01 last week, Vion unexpectedly increased it by €0,02 per kilo on Monday. Other Dutch slaughterhouses even implemented an increase of €0,03 on Wednesday. The German pig price (the VEZG quotation) increased by €0,05 to €1,85 per kilo, but that increase was not followed by Tönnies and Vion Germany. From Thursday they will charge a Hauspreise of €1,80 per kilo.
The Internet Exchange subsequently fell by €7 to €0,03 per kilo on Friday, June 1,91, after the indicator had risen considerably during the previous auction. The erratic changes indicate that slaughterhouses have to walk a fine line between hooking the pigs on the one hand and monitoring margins on the other.
Wider selection, flat meat market
Due to the cancellation of slaughter days (Ascension Day and Pentecost), the pig supply is temporarily more extensive. Yet the offer is not excessive. This is because pig farmers are reluctant to give up pigs and hint at higher pig prices. Delivery weights are therefore increasing, traders say.
On the meat market, slaughterhouses are unable to achieve higher meat prices within Europe, but this also seems difficult on Asian sales markets. This also explains the cautious pricing policy of the large German slaughterhouses.
Change DCA Exchange Price 2.0
Regarding the change in the DCA Stock Exchange Price 2.0: a group of traders advocates unchanged and believes that the quotation is good, while the others believe an increase is appropriate. This is because the slaughterhouses in the Netherlands have prospered. Based on the statements, the quotation for slaughtered pigs increases by €0,01 to €1,70 per kilo. The price of live pigs also increases by €0,01 to €1,37 per kilo.