Inside Pigs
DCA Stock price 2.0 takes foot off the gas
The pig market has had a wild few weeks, with prices rising rapidly. Now that Sinterklaas has left the country and Christmas is fast approaching, the situation seems to be normalizing.
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Over the past few weeks, pigs ready for slaughter have not been available and many (heavy) pigs have been slaughtered. The slaughter figures speak volumes. Last week, 339.000 pigs were slaughtered. That is the highest number ever. With an average weight of 99 kilos, the pigs were also very heavy. The Dutch slaughter record is a welcome addition to the tight meat market.
There are still 2 full weeks left until Christmas and the good meat demand will most likely remain in place until then. Pigs ready for slaughter remain in high demand. On the other hand, supply is increasing slightly, causing pig prices to level off. The Internet Exchange, which remained stable at €6 per kilo on December 1,92, demonstrated this. The wider range in the Netherlands is partly due to this the stoppers who must have the stables empty before 2020.
Disappointment for European exporters
On the world market, China continues to demand large volumes of European pork. It is a setback that the country has (partly) imposed tariffs on American pork. will delete. As a result, exporters in the European Union are losing their competitive advantage, which was clearly reflected in the quotations in recent months. Where pig prices in Europe are sky high, the American quotes in a price trough. The effects are likely to become apparent in the short to medium term.
Next week, the DCA Exchange Price 2.0 will remain the same at €1,95 per kilo for the slaughtered pigs. The price of live pigs is stable at €1,58 per kilo. There are no indications of a price correction yet, although some are taking it into account in the back of their minds.