Inside Pigs
DCA Scholarship 2.0 makes great strides
It's been a wild week in the pig market. Slaughterhouses prey on pigs that are ready for slaughter, but they don't give a damn. The DCA Beurprijs 2.0 thus rises to the highest level in 2019.
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It's mid-August, but that hasn't stopped pork prices from making big moves. For fattening pig farmers who can deliver flexibly, these are the weeks to make a difference. Pigs are thus retained with a view to later price increases. The already tight pig supply is therefore even tighter.
Slaughterhouses have to stock up to ensure sufficient supply. This explains the differences in the odds. While Vion increased this week by €0,05 per kilo, Compaxo, Westfort and Pali Group opted for an increase of €0,07. Van Rooi was in between with an increase of €0,06 per kilo. The German pork price (VEZG) rose on Wednesday by €0,07 to €1,85 per kilo. The large German slaughterhouses willingly responded to this movement.
Low slaughter numbers in Germany
The shortage is reflected in the slaughter figures. In Germany, pigs were again slaughtered below the 900.000 mark last week. In the Netherlands, 292.000 pigs were hanging on the hooks, with an average slaughter weight of 95,90 kilos. This week, Dutch slaughterhouses say they have little slaughter due to a limited supply.
The tight pig supply fits seamlessly with the seasonal pattern. The slaughter figure usually dips in week 31 and then resumes its upward trend. Although a repetition of this pattern is likely, German supply is likely to remain tight due to the sharp decline in animal numbers.
Nervous meat market
The lower slaughter numbers are also noticeable on the meat market. Parts for the European market in particular (such as the hams and the fore-end) are scarce and therefore highly sought after. The result is rapidly rising meat prices. Sales to China are also reportedly increasing, because the country is still in conflict with the United States. Recently, China has a large volume of American pork canceled, after it increased significantly in May and June implemented.
European exporters are the laughing third. There is also room for higher selling prices in China, now that pig prices are heading there record levels. In Japan, European exporters experience some additional competition from the US, which is hitting a wall in China.
Plus 7 cents
All in all, the pork price can only go one way and that is up. Traders say the pigs are being pulled on all sides. They therefore argue for significant increases. The DCA Exchange Price 1 increases by €2.0 to €0,07 per kilo for slaughtered pigs. The quotation for live pigs increases by €1,76 to €0,06 per kilo.