Inside Pigs
Inescapable reduction of DCA Stock market price loud clapping
The eyes were closed for a long time to the real reality in the pig market. See you this week. The slaughterhouses made it clear that the limit of the permissible had been exceeded and there was only 1 answer. What do the price reductions mean for the DCA Scholarship 2.0?
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
Nobody wants a reduction in pig prices, but it seems to be the only remedy for the current market situation. However, many did not expect this reduction this week. In a year in which the desire for high pig prices was almost always heard, a rather uncomfortable development.
These hopeful expectations were mainly based on China, but the Chinese side is still not taking action. This damper has resulted in a sharp decline in margins at the slaughterhouses in recent weeks. The red color became increasingly prominent. The answer: in addition to lowering pig prices, the slaughter programs have also been adjusted. The supply of pigs is not large, but nevertheless it takes effort to get all the supply posted. Pig farmers who do not hope that it will remain at 1 price reduction, provide ample supply.
Vion opens the line
The decline was started by Belgium and followed by the Netherlands and Germany. Vion opened the series of reductions for the Netherlands last Monday with minus €0,04 and adjusted the price to €1,82. Van Rooi reduced by €0,03 (€1,62), Compaxo by €0,06 (€1,58), Westfort by €0,04 (€1,61) and Pali Group by €0,06 (€ 1,75).
With our Eastern neighbors, the North/West quotation fell to €1,77 (-€0,06), this example was followed by Vion Germany and Tönnies. The Internet Exchange reached €12 (-€1,83) on Friday, July 0,05. The intention in Germany is to fix next week's price for several weeks.
Practice shows that it usually does not stop at just 1 reduction, which is why a further reduction is expected for the coming week. The DCA Exchange Price 2.0 decreases for slaughtered pigs by €0,09, bringing it to €1,63. For live pigs, a reduction of €0,08 is applied, bringing this price level to €1,31.