Inside Pigs
Tropical grid game breaker for pig price
Meat sales may be better, but the extreme heat means that fattening pigs will be purchased less by slaughterhouses in the coming week.
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It will be sweltering hot in Northwestern Europe in the coming days, according to the weather forecast. The mercury will continue to rise above 30 degrees until next Friday. This means that the pig sector falls back on the heat protocol, whereby all kinds of restrictions apply at the expense of the slaughter rate.
All this does not make the marketing of fattening pigs any easier. Somewhat unfortunate timing just as the undertones in the pig market improved and the aftermath of the closure of Tönnies increasingly faded into the background. The more positive mood is reflected in, among other things, the sow price which has been on the rise for a long time this week. And the Internet exchange in Germany also increased by 2 cents to €1,48 per kilo on Friday. The distance with the German pig price (VEZG) has thus been stretched to 5 cents, which hints at an imminent increase.
Meat market has 2 faces
The sale of meat components has 2 faces. Within Europe, sales have improved, partly due to weather-driven barbecue demand. However, the stronger euro (against the dollar, pound and Brazilian real) is making itself felt on the world market. This is leading to an increasing headwind, all the more so as the stronger euro is expected to last for a while.
All in all, several forces in the pig market are working against each other. A higher pig price in the coming weeks is certainly not out of the question, if meat sales in Europe continue to improve. However, due to the tropical temperatures, fattening pigs will be difficult to place in the coming weeks. The DCA Fair Price 2.0 for slaughtered pigs therefore remains at €1,34 per kilo. The price for live pigs is equal to €1,05.