Inside Pigs
Clear way for further increase in pig price
This week it was Europe-wide that pig prices were on the rise. It seems that the ceiling has not yet been reached for next week either. What does this mean for the DCA Scholarship Prize 2.0?
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All signals are green when it comes to further increasing pig prices. This means that meat sales are realized at higher price levels and that sales are not affected by this. It can be heard that sales of meat to Asia are developing favorably in terms of volume and price. Besides China, there are more countries that are buyers of pork. Examples include Thailand, Singapore and Vietnam. The German Internet Exchange seems to be taking an advance on the expected price development in week 11 by reporting a plus 4 today, resulting in €1,65.
Massacres in Germany
According to figures from the German Statistical Office (Destatis), significantly fewer pigs were slaughtered at the beginning of this year than last year and in January approximately 4,43 million pigs were on the slaughter hook, which is a decrease of 10,3% compared to with last year. Pork production fell less sharply due to higher slaughter weights and fell by "only" 8,4% to 435.140 tonnes.
The slaughter weights have now normalized again and the average slaughter weight was 98,1 kilos in week 9. The slaughter figure in the same week of more than 870.000 heads was still more than 20.000 heads below last year's level.
Scholarship price 2.0
Dutch slaughterhouses that listed after Monday saw more room for an increase than the plus 10 of the DCA Stock Exchange Price 2.0. The comment that accompanied Vion's listing last Monday mentioned that meat sales prices would not be able to keep up with the strong price increases of pigs at that time. What remains remarkable is that this has not stopped Vion from moderating their price increases.
Traders who submit their expected prices every week are also clear about the movements the pig price should make next week. Nevertheless, there are also those who keep the increase very limited. According to those traders, the rate of increase in the pig price is too fast and that could endanger the stability of the DCA Exchange Price 2.0. Time will tell. For week 11, the mutation for the slaughtered pigs amounts to plus €0,11 and for the living pigs to plus €0,09. As a result, prices rose to €1,54 and €1,17 respectively.