Inside Pigs
Higher pig price within reach
Until recently, a higher pig price was out of the question, but improved market conditions are increasing the chances of an increase.
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The ample pig supply, the biggest stumbling block in recent weeks, is slowly drying up. Partly due to the slowdown in growth in many companies, as a result of the scorching heat, which will drop in the coming days. In the same breath it should be noted that the slowdown in growth in about 2 weeks may actually lead to some extra supply, when the (almost) slaughter-ready pigs start to grow again.
Growth slowdown
Apart from the slowdown in growth, the supply is shrinking because more slaughter is taking place in Germany. Tönnies, for example, is almost back to the old level of approximately 25.000 slaughters per day. The German slaughter figure has been above 850.000 slaughters again since the last week of July. In week 32, the slaughter figure was again just above 2019 and that was a long time ago. In the Netherlands, the slaughter figure is stable, slightly below the 300.000 limit. In summary: the sale of fattening pigs to next week will be easier, but more flexibility is desired.
Green light for Tönnies
In terms of meat sales, it is positive that Tönnies China again may supply. Vion and Van Rooi do not yet have the green light. This seems to be a matter of time, although some impatience is noticeable in the sector. There is stable sales within Europe. Retail sales are above average. Sales to the food service are weak, for example because sports competitions and other events where a lot of meat is usually consumed are canceled.
DCA Exchange Price 2.0 remains stable
A more positive trend is visible in the development of pig prices. The Internet Exchange further distanced itself from the German pig price today and rose by 2 cents to €1,50. This stretches the distance to 7 cents. And that hints at an increase next Wednesday. There is interest among Dutch traders to increase the DCA Exchange Price 2.0, although this group does not have the upper hand. The quotation for slaughtered pigs therefore remains at €1,34 per kilo, the price of live pigs at €1,05. All in all, a higher pork price seems to be a possibility in the coming weeks.