Inside Pigs
Price pressure on the pig market is clearly easing
The period around Christmas and New Year brought 'peace' around the slaughter figures. A periodic phenomenon around that time. This phenomenon is followed in week 2 by a periodic peak.
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Although pig prices are still high for this time of year, they are considerably lower than a few weeks ago. The German pork price (VEZG) dropped €0,04 to €1,82 per kilo this week. This reduction can be regarded as a windfall, because a larger loss had been taken into account. It may be a signal that the worst of the pressure is behind us.
In the meantime, the pig price is once again looking upwards. The Internet Exchange increased today (Friday, January 17) by €0,02 to €1,87 per kilo, the first increase since November last year.
Slaughter figures confirm ample supply
The ample pig supply in recent weeks is reflected in the slaughter figures. In the past week, 320.000 pigs were slaughtered. This number is the same as the same week last year and well higher than the 5-year average for that week. The expectation, given the annual trend, is that this figure will decline somewhat in the coming week. Traders indicate that the supply is less extensive than in recent weeks.
The pigs are heavy, with an average slaughter weight of 101,40 kilos, and weigh more than 2 kilos more than in the second week of 2019. Normally the weight will drop somewhat in the coming weeks, which is also the expectation for this year.
DCA Stock Price 2.0 up
All in all, price pressure on the pig market appears to be behind us, partly due to the fact that meat prices are trending towards stabilization. A number of traders indicate that the DCA Exchange Price 2.0 is too low, so the quotation for slaughtered pigs increases by €0,01 to €1,72 per kilo. The price of live pigs also increased by 1 cent to €1,39 per kilo.