Inside Pigs
Tight pig supply on the eve of heat wave
The supply of pigs ready for slaughter in Northwestern Europe is very tight. Moreover, with a sweltering summer week ahead, growth slowdown is looming. What does this mean for the DCA Scholarship Prize 2.0?
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Although pig prices have not yet found a bottom this week, the lower limit is within reach. The German pork price (VEZG) had to lose another €0,03 last Wednesday to €1,74 per kilo. Afterwards, the Internet stock market did not drop any further on Friday. This indicates that the boiler is under pressure.
Meanwhile, one makes positive sentiment even regains control of the market. The pig supply in Northwestern Europe is very tight. In Germany this has been the case practically all year round and will continue to do so (based on... count in May) for the time being. In the Netherlands, supply and demand have been reasonably balanced in recent months, but here too, shortages are starting to emerge.
Few pigs ready for slaughter
Traders say there are few pigs ready for slaughter available. A week with... tropical temperatures furthermore, the prospect does not make the offer any wider. The tight supply corresponds to the declining slaughter figures. In the past 3 weeks, the slaughter figure no longer exceeded the limit of 300.000 pigs, which was repeatedly exceeded in the previous weeks.
Slaughter weights are also falling, although the average slaughter weight in the past week (96,20 kilos) was still almost one kilo above last year's level. Slaughterhouses are slowing down a bit these weeks due to the holiday period. This camouflages the tight pig supply.
The holiday period also brings weak European demand for meat. In addition, meat sales outside Europe are being disrupted by German and Canadian pork. Germany is temporarily banned from exporting to the Philippines, while Canadian pork is refused by China. As a result, these countries are trying to tap into alternative sales channels
Stable pork price ahead
All in all, a stable pork price is most likely in the coming weeks. An increase does not seem feasible during the holiday period. The tight pig supply can be regarded as a positive starting point for later this year.
After a significant reduction in the last week (including a correction of increases not followed by slaughterhouses in the previous weeks), the DCA Exchange Price 2.0 remains at €1,63 per kilo for slaughtered pigs. The price of live pigs is unchanged at €1,31 per kilo. A