Inside Pigs
There is music in the pig market again
There is music in the pig market again now that Dutch slaughterhouses have increased quotations. At the same time, we must guard against too much optimism, because the supply remains ample. However, there is more sex again, as the statistics show.
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For weeks, pork prices were set in stone. Both in the Netherlands and in the surrounding countries. That situation has come to an end now that Van Rooi Meat, to speak in cycling terms, started an 'escape attempt' this week and was followed by Westfort. Both slaughterhouses have recently regained their China recognition, which gives them the opportunity to offer something extra.
Other slaughterhouses (such as Compaxo, Gosschalk and Pali) did not join in or only partially on Wednesday. The quotations also remained in place in Germany. The question now is, will these slaughterhouses (including Vion) still increase next week?
German market difficult
The answer to that question seems to be yes, but we will only know for sure afterwards. No major price revival is expected in Germany. The supply of pigs remains on the large side there, because the slaughters are lagging behind. Tönnies says it is currently only using 75% of capacity, which amounts to 20.000 to 25.000 slaughters per week at the main location in Rheda Wiedenbrück. The number of slaughtered pigs in Germany last week was 869.964 pigs, about 8% less than this time last year.
In the Netherlands, the slaughter figure is clearly showing an increase after a stable trend for weeks. At around 301.000, the slaughter figure was the highest since mid-May, despite the fact that slaughterhouses still indicate that they are slaughtering less. And despite the increase in slaughter, the supply will remain generous for next week, many traders indicate. The average slaughter weight of 99.20 kilos confirms this.
DCA Benchmark Price - Pigs
With regard to the change in the DCA Exchange Price, all statements opt for an increase. However, some caution is required, because the market does not necessarily feel smooth and meat prices are hardly rising. The quotation for slaughtered pigs increases by 5 cents to €1,39 per kilo. The price of live pigs increases by 4 cents to €1,09 per kilo.