Despite supply pressure floor for pig price

The supply of pigs ready for slaughter in Northwestern Europe is very large, but the quotations are nevertheless bottoming out this week. This means that the stable DCA Stock Price 2.0, which Friday evening was published subject to change may remain.

After a significant downward revaluation in the previous weeks, the German pig price is trading at €15 per kilo today (July 1,47). On Monday, Vion already kept the quotation unchanged and other Dutch slaughterhouses also keep their prices unchanged. This creates a certain form of peace in a market where the supply of pigs is still oppressively large.

Low slaughter numbers in Germany
The German slaughter figure has been moving below the 3 mark for the past 800.000 weeks. Last week, 783.552 pigs were slaughtered, more than 10% less than the same week last year. This is reflected in the loss of slaughter capacity at Tönnies.

In the meantime, Tillman's Convenience, a subsidiary of the meat group in Rheda-Wiedenbrück, has resumed meat processing activities under strict conditions. From the end of this week, it is also allowed to slaughter again, which increases the prospect of a dwindling supply.

Beursprijs 
For DCA Markets BV, the developments in the pig market give reason to definitively set the DCA Exchange Price 2.0 at €1,33 per kilo for slaughtered pigs. The price of live pigs remains unchanged at €1,05 per kilo.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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