Inside Pigs
Saturday slaughter hints at higher pig price
Although there are more than enough pigs ready for slaughter, the market mood has improved this week. A higher pig price is in the air now that various slaughterhouses will also slaughter on Saturdays.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
Pork prices have been moving sideways for a few weeks. This allowed meat prices to rise and that has happened in recent weeks. The lucrative China in particular is on the market and is increasingly demanding luxury meat parts (in addition to by-products). The European meat market is in balance.
Due to good Asian demand, some Dutch slaughterers now also slaughter on Saturdays. Although the supply is still ample, 1 extra slaughter day gives the market some breathing space. Where traders had to transfer lots in recent weeks, this is less the case this week. The pig supply is also drying up in Germany, fueled by good demand from slaughterhouses.
Increase in Germany?
The Internet Exchange endorses the more positive market image. The trendsetter rose this week, spread over 2 trading days, by €0,03 to €1,94 per kilo. As a result, the difference with the German pig price (VEZG quotation) has been increased to €0,09. Normally the sales amount is €0,06 to €0,07. This indicates that a small increase is in the air. However, a hit of, for example, plus €0,05 is not realistic. There are still too many pigs ready for slaughter in Europe for that. In addition, pig prices are already at a high level, which limits the room for increase.
Trader views on the DCA Exchange Price differ. The majority of the statements at DCA-Markets argue for unchanged. However, a number of traders believe that the listing should take precedence over the German increase. Based on the averaging, the quotation for slaughtered pigs remains at €1,76 per kilo. The price of live pigs remains at €1,44 per kilo.