Inside Pigs
Another big rib from the pork price
The situation on the pig market is becoming increasingly dire. The DCA Stock Price 2.0 cannot avoid a significant correction.
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The two basic ingredients of the market are both negative: the pig supply for next week is very ample and meat sales are extremely slow. The wide range is prompted by the absence of slaughter days due to King's Day in the Netherlands (April 2) and Labor Day (May 27) in the rest of Europe. It is therefore not surprising that traders 'complain' that the pigs are poaching.
Very difficult meat sales
Sales on the meat market are becoming increasingly difficult. Slaughterhouses say that cold stores are packed and it will certainly be crowded, although the chairman of the Dutch trade association of cold stores indicated this week that the situation not yet critical is.
The stagnant sales to the food service are increasingly breaking up. And American competition is fierce in the lucrative Chinese sales market. Sales to China often come in waves and demand is currently a bit calmer.
Significant reduction in stock market price
It is not surprising that the German pork price (VEZG) fell sharply this week, given the circumstances. However, the reduction was greater than many had thought. The Dutch market is of course affected by this: the DCA Exchange Price 2.0 therefore decreases by €0,08 to €1,62 per kilo for slaughtered pigs. The price of live pigs drops from €0,07 to €1,29.