Inside Pigs
Offer still too large for higher pig price
All balls to lucrative China is currently the motto for slaughterhouses. Although market sentiment is good, not all signals are green for...
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Despite signals pointing to an increase, the German pork price (VEZG) remained stuck at €1,85 per kilo this week. This indicates that higher pig prices, even in this positive market, are not a simple matter. Although sales to China are booming, the European meat industry is showing strong resistance to the high prices.
Slaughter on Saturday
Slaughterhouses are increasingly starting to slaughter on Saturdays. This underlines that the margins further down the chain are good. The lucrative sales to China are often the motivation to do this. Contract obligations have been entered into and that meat must be delivered. In this way, slaughterhouses 'pull the pigs', as it is often called.
Many traders hear of the good demand, but say that this does not (yet) lead to a tight supply. This is also evident from the slaughter figure, which passed the 300.000 mark last week for the first time since mid-June. There will also be more than enough pigs for next week. The expectation is that the supply will eventually dry up if the 'Saturday slaughter' continues.
Undertone positive
The undertone on the pig market is and remains positive. Somewhere the increase, as opted for by a number of traders, is also up in the air. However, there is not yet sufficient support for this. The DCA Exchange Price therefore remains at €1,76 per kilo. The price of live pigs remains at €1,44 per kilo.