Inside Pigs
Will the DCA Stock Price stay dry in a rough market?
The pig slaughter has caused a significant setback. The slaughter rate has been drastically reduced and is suddenly below last year's level. This while the pig supply is still ample. In short, difficult market conditions. Will the DCA Stock Price stay dry?
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Slaughters in the Netherlands were catching up and in recent weeks were ahead of last year's levels. However, this changed in week 14 and significantly fewer pigs were slaughtered. In total, approximately 257.000 pigs were hanging on the slaughter hook. This is a decrease of no less than almost 50.000 pieces compared to the previous week.
While the slaughter rate previously was more than 4% above last year's level, in week 14 it dropped to no less than 15% below last year's level.
Massacres in Germany
In Germany, the slaughter was already behind last year, but the oversupply there was also almost eliminated. Easter has now created a large supply again, but due to limited sales the supply cannot be reduced quickly. The slaughters have therefore not yet been able to catch up and are, as they have been since the beginning of this year, below last year's level.
The market for pigs for slaughter is getting off to a slow start and we are waiting for demand impulses. In addition, slaughterhouses are still struggling with limited capacity due to the corona crisis. The DCA Stock Exchange Price 2.0 remains stable despite the difficult market conditions. This still means a price of €1,54 for slaughtered pigs and €1,17 for live pigs.