Tighter offer dominates the difficult meat sales

Last week, several traders had doubts about the price development of pigs. The question was whether the slaughterhouses would go along with the increase in pig prices. This question has now been amply answered with a 'yes'. It remains difficult to estimate how the slaughterhouses will act in the coming week.

A first insight came today from Germany where the Internet Exchange showed a plus of €0,05 and amounted to €2,03. All offered lots (11 units with a total of 1.845 pigs) were traded. The price range was between €1,985 and €2,045. Tönnies indicated in the weekly commentary that an increase in pig prices in the week before Carnival was difficult to get back into the market. Sales to China have also come to a standstill due to the outbreak of the coronavirus. The optimism is therefore mainly based on the tightening supply of pigs.

Current pig supply determines mood
In the Netherlands, the stories from the slaughterhouses are not much different than in Germany. For example, Vion reported at the beginning of the week that meat sales on both the national and international markets are still slow. The supply of fattening pigs must largely be sold in a weaker European market, as a result of the problems in China.

The drying up of the pig supply is grist to the mill of pig traders. In recent weeks, many were not happy with the situation the Dutch pig market had reached. For next week, the stories from slaughterhouses seem to be taken for granted and they are betting on a significant increase. Traders are supported by the almost certainty of a significant increase that will become visible in Germany next Wednesday, triggered by the increase in the Internet stock exchange.

Stock market price continues to rise
The outcome of the traders' statements was a significant plus. The DCA Exchange Price 2.0 increases for slaughtered pigs by €0,06 to €1,82 per kilo. The price of live pigs increases from €0,05 to €1,47 per kilo.

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