Pig market shrouded in mystery by AVP

The pig market in Northwestern Europe is shrouded in mystery. That's crystal clear. Opinions go in all directions, but no one really knows. Some traders fear double-digit reductions, while others think a small reduction in the Netherlands is sufficient. 

Significant reduction in Germany
The direction in Germany is clear. The German VEZG quotation has been reduced by 11 cents today (20 September) to €1,27 per kilo. Rumors can be heard that the pigs that will be delivered early next week will be charged at the price of next Wednesday. And that points to another reduction. In any case, it is extremely difficult to get the fattening pigs placed in Germany, now that the slaughterhouses there are taking in fewer. The result is that the supply in the Netherlands, which was already ample, continues to increase. Rumor spread through the market that there would be transport bans, but according to Vee & Logistiek that is not the case. 

How will meat prices react? There is a good chance that Germany will flood the European market now that China is likely to close the bridge. This is not yet the case and Germany itself has stopped exports. South Korea has already indicated that it will ban German pork. There appears to be strong lobbying from the German meat sector to only halt exports from the state of Brandenburg. The question is whether China will respond to this. 

Provisional DCA Scholarship Award
These are questions for which there are no answers yet. It is impossible to say when they will be. The pig trade in the Netherlands is strongly divided over the change in the DCA Exchange Price. Due to the uncertainty, DCA has decided to definitively determine the quotation for week 38 on Wednesday evening, September 16 at 20.00 p.m. A widely shared opinion within the advisory committee is to temporarily lower the quotation for slaughtered pigs by 5 cents to €1,34 per kilo. The price of live pigs drops by 4 cents to €1,05. 

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