Inside Pigs
Stable pig price can trigger meat demand
After a long and severe fall in prices, pig prices are once again finding ground. This is a positive development that may trigger additional demand for pork from China.
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The fact that the German pig price found a bottom this week at €1,60 per kilo is a windfall that brings calm to a still turbulent market. The wounds can be licked, although the danger has certainly not passed yet. It is positive that tests show that in many large German slaughterhouses no corona infections .
Wide range, but not oppressive
All in all, the pig supply in the Netherlands is ample, mainly because sales to Germany have fallen due to the closure of the Westfleisch location. There will also be a slaughter day next week, due to Ascension Day on Thursday. Given the circumstances, the supply is not extremely oppressive.
The relaxation of government measures in many countries also provides starting points for meat sales. If temperatures improve in the coming weeks, this may also create demand for BBQ parts.
After a long fall in prices, meat components are also finding a bottom. This is positive for sales of pork and by-products in Asia. Exporters say that Chinese and Japanese importers are currently holding back and waiting for the price to fall. They limit imports to relatively small volumes. Now that the market appears to have found a bottom, Asian buying interest may be increasing again. The Chinese meat shortage is still extremely large and this may contribute to a recovery in pork prices.
Stable Stock Price
To achieve this, meat demand from the food service channel will first have to increase, which will take a few weeks. And large meat stocks have been built up in recent weeks. In short: The market needs time to catch up. Just like the German quotation, the DCA Exchange Price 2.0 for slaughtered pigs has also stabilized at €1,43 per kilo. The price of live pigs remains at €1,14.