Inside Pigs
Trade unanimously advocates stable pig price
Now that the pig market is confronted with the loss of slaughter capacity, the trade is unanimously in favor of an unchanged pig price. That way the market remains a bit calm.
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These are uncertain times. At first, corona infections remained at a distance (United States). Then the danger came closer (Germany). And now the two largest pig slaughterers in our country are obliged by the authorities to keep large locations in Groenlo and Helmond closed. With today's knowledge, the locations can open again next week, which offers prospects on paper. In the meantime, other slaughterhouses in the Netherlands are working overtime to keep the supply flowing.
At the same time, the closures may be extended or new locations may be added. Hugo de Jonge, Minister of Health, announced today (May 29) that all staff in Dutch slaughterhouses must be tested. This will probably take several weeks, meaning the uncertainty will continue for the time being. And the various parties in the market (producers, traders and slaughterhouses) have to deal with these circumstances.
Recovery takes time
The meat market in Europe in itself does not feel unfriendly, but at the same time meat sales are not yet at their previous level. The recovery takes time. The fact that there are plenty of barbecues due to the nice weather is a positive development with regard to the accumulated stocks.
The biggest concern for now is not so much the recovery of meat consumption, but the maintenance of slaughter capacity and thus the flow of supply. In this uncertain market, the trade at DCA Markets - following the stable German pig price - advocates an unchanged DCA Stock Exchange Price 2.0 as the best remedy for peace. The quotation for slaughtered pigs remains the same at €1,51 per kilo, the price of live pigs remains at €1,21 per kilo.