Inside Pigs
Pig price doesn't start year unscathed
The holidays are passé, bringing back the normal rhythm. At the beginning of this year there is talk of a pig's plug and prices are therefore under pressure.
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2019 is considered by experts as one 'exceptional pig year' described, but nevertheless ended on a downer. Almost all quotations were made shortly before New Year's Eve significantly depreciated. Price pressure will continue in the new year, although views differ per trader.
This is also reflected in the statements at DCA Markets. Some traders opt for an equal DCA Exchange Price 2.0. Others are in favor of a significant reduction, prompted by the price correction that the slaughterhouses have in mind. It is also expected that the German pig price will drop significantly next week. Others contradict this, they say: 'the soup is not eaten as hot as it is served'. In short: opinions are divided.
Supply pressure
The pressure is created by a wide supply of pigs ready for slaughter. Shortly after the holidays you could speak of a traditional pig's gag. The meat market still has to gain momentum, because various processors will not start again until next week.
All in all, a reduction for the DCA Exchange Price 2.0 cannot be avoided. The quotation for slaughtered pigs drops by €0,07 to €1,80 per kilo. The price of live pigs drops from €0,06 to €1,45 per kilo.