Inside Pigs
Tension in the pig market is falling, but not gone yet
More than a week after the outbreak of African swine fever in Germany, calm seems to be returning. It can be concluded that the extreme price pressure from our Eastern neighbors has not spread to our country.
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The dependence on Asian markets has become clear in recent days as Germany has been denied exports. It resulted in a price drop of as much as 20 cents, but this week the VEZG quotation found a bottom at €1,27 per kilo. In the Netherlands and surrounding countries, the declines are much less extreme, because market parties there can still export to lucrative China, Japan and South Korea. The fact that Vion has also obtained the export license for the Chinese market again is a positive development.
There is still a lot of unrest on the European meat market now that Germany is clearly present to generate sales. German slaughterhouses are busy adapting the cut for the European market when processing the carcass. This will reportedly take several weeks. In the meantime, the German authorities are working hard to convert the Chinese export ban from national to regional. Whether China will respond to this remains to be seen. The Rabobank thinks so.
Stable DCA Scholarship Price 2.0
On the positive side, the slaughter programs remain relatively intact. The pig supply in Northwestern Europe is still ample, but not problematic. All in all, the pork and meat market needs time to adapt to the new reality, but there is no longer any extreme tension. Many traders choose to remain calm and argue for a stable change in the DCA Stock Exchange Price 2.0. The quotation for slaughtered pigs remains the same at €1,34 per kilo. The quotation for the slaughtered pigs is €1,05.