Despite resistance, higher pig price

After the German slaughterhouses (Vion and Tönnies) applied a Hauspreise last week, they increased the quotation last Wednesday. They both increased by €0,03 to €1,85 per kilo, putting them back on par with the VEZG quotation. The Internet Exchange has now risen to €1,98 per kilo. The indicator of the German pig market increased by no less than 6 cents on Friday, completely contrary to expectations. 

Tight German offering 
The rising German quotation symbolizes the tight pig supply. Last week the slaughter figure was also well below the 1 million mark. There will again be plenty of placement space in Germany next week, traders say. In the Netherlands, supply and demand are more in balance. This is also evident from the slaughter figures in recent weeks, which remained well above the 300.000 limit. Moreover, the average slaughter weight is still more than 100 kilos. According to some traders, this is an obstacle to a higher pig price in the Netherlands. 

Especially because the situation on the meat market is still uncertain. The big question, for example, is whether and when China will import plenty of European pork again, now that the country is in the grip of the coronavirus. In addition, meat sales within Europe are at a low level, which fits with the time of year.

Still higher stock price
Although an increase in the DCA Exchange Price 2.0 is not an ABC, the quotation for slaughtered pigs does increase by €0,03 to €1,76 per kilo based on the specifications. The price of live pigs increases from €0,02 to €1,42 per kilo. It will be interesting to see how Dutch slaughterhouses will respond to this mutation next week. 

View the latest listing here.