Inside Pigs
Wide range of game breaker on pig market
Slowly but surely the broken weeks around Christmas and New Year are approaching. In the run-up to this, the ample supply of pigs is expected to shrink badly, but the pressure is off the price.
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In a 'normal' year, the pig price could now make a Christmas sprint. However, corona and African swine fever in Germany have taken such a heavy toll on the market that it will not fly this year. It is already positive that pig prices have reached a bottom after a few turbulent weeks.
The German pork price remained at €1,19 per kilo this week and the Dutch slaughterhouse quotations also remained in place. This means that the ratio between Van Rooi and other quotations is still crooked. The wide range continues to determine the market. Despite the good intentions of Tönnies, among others, to slaughter more, the German slaughter figure remains far behind compared to previous years. In the meantime, the slaughter figure has been below 850.000 for weeks, meaning the supply continues to increase.
Some relief at the meat market
It is not the case that there is no Christmas demand on the European meat market, market parties indicate. At the same time, the lost demand from the food service, due to the ongoing lockdowns, is a major loss. In Germany, the measures will remain in force until at least January 10. A starting point is that Danish slaughterhouses can export to China again this week. This offers some relief for sales within Europe. Sales to Asia, especially China, appear to be improving after a poor period.
All in all, the market is too stiff for an increase, but a reduction is no longer an option. The DCA Market Price 2.0 therefore remains the same at €1,20 per kilo for slaughtered pigs and the price of live pigs at €0,90.