Inside Pigs
Limited supply of pigs is positive
One man's death is another's bread, in pig land seems no guarantee of an eager demand for meat. It is still waiting for more demand from China. What does that have to do with the DCA Scholarship Prize 2.0?
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The quotations make it clear that, despite the limited supply (due to fewer piglets in the spring) and slower growth, there is apparently no room for an increase in pig prices. This is unfortunate for the pig farmers, because the high expectations for this season have not materialized. The German Internet Exchange on Friday, July 5, also gives no hope for a revival, despite the fact that all 11 parties traded at unchanged prices.
On Friday morning, German slaughterhouses raised the mood by sending signals that the pork price could drop by €0,05 in the coming week. However, shortly after these rumors were spread, pigs were ordered again just as cheerfully for delivery early next week. It underlines the shortage in the pig supply and the wish that pigs should not become more expensive. Pigs are also being taken up well in the Netherlands, although confidence in a stable pig price appears to be decreasing somewhat in the coming summer period, judging by the supply of pigs at the end of week 28.
Bad trade?
The arguments from the meat trade about why prices cannot rise are a fallacy for many pig farmers. Little value is attached to the stories about poor meat sales, falling meat prices and a wait-and-see attitude from China. And where is the effect of the piglet shortage last early spring, because that was there anyway? The pigs are neatly and neatly admitted every week, which seems to disguise the reality.
Yet the story of the difficult meat trade has been the recurring alarm clock in June. There are also signals for next week that there is a lot of tension in meat sales. Based on the expected changes in the various meat components, this means a negative change of more than €0,015 per kilo. Until now, slaughterhouses have almost been able to write black figures, but it is expected that losses will be made in the coming week. The summer holidays have now started in Europe, which, among other things, has an impact on the sales of the 'Better Life concepts'.
On balance, the Dutch pig market can be summarized as hardly unchanged, with a strong plea for a correction of the latest price increase of the DCA Exchange Price 2.0. However, the averaging of traders' statements this week does not suggest that prices will be adjusted. For slaughtered pigs the price remains €1,72 and for live pigs €1,39 per kilo.