Inside Pigs
Pig supply just doesn't want to shrink
Despite the fact that the slaughter capacity has increased, the pig supply is not going to decrease. However, meat sales are picking up again.
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Tönnies may have been open again for a week, but it is still far from running at full capacity. Slaughterhouses in the Netherlands and Belgium are also taking it easy. Although the demand for meat is currently improving, the cold stores in Europe are packed with agricultural goods, which does not benefit storage costs. And there is also the export ban to China that Van Rooi, Vion and Westfort are faced with.
However, there appear to be developments that offer the prospect of renewed market access. According to Reuters, the Chinese National Health Commission has drawn up a list this week that contains guidelines that meat deliveries must meet (in the context of the coronavirus). The Chinese authorities also used cameras to monitor Dutch slaughterhouses to gain insight into the process and the response was positive. The motto remains: first see then believe.
Offer remains ample
Traders indicate that it is a proverbial sweat to get fattening pigs placed. Symbol of this situation is the Internet stock exchange, where no stock has been traded for weeks. Although meat sales are picking up again, the ample supply will probably continue to be an issue for a while.
Despite sparingly higher declarations, there is still little interest in increasing the DCA Exchange Price 2.0. The price for slaughtered pigs therefore remains at €1,33 per kilo. The price for live pigs remains unchanged at €1,05 per kilo.