Pig price grunts its way up

Pig farming often views weeks with 4 slaughter days with some concern. Additional supply of pigs and transfers are then the practice. That will be no different for next week. What is special, however, is that the DCA Exchange Price 2.0 (Exchange) sees an opportunity to increase despite ample supply. Traders estimated the chance of price increases as positive and wanted to anticipate this. It was important to what extent the slaughterhouses would go along with this.

Barbecue from the storage room
Vion released last Monday with a change of plus €0,05 in VAT, which increased their quotation to €1,68. Vion indicated that European fattening pig quotations were rising, against a background of limited demand from various sales markets. We are mainly waiting for an improvement in the weather, which encourages consumers to take the BBQ out of storage and thus increases meat consumption.

Further relaxation of corona restrictive measures will also further increase meat consumption. Traders indicated that the delivered pigs were paid for a cent more, apparently a tacit correction has been made. This means that Vion's change amounts to plus €0,06 in VAT.{{dataviewSnapshot(2_1621608539)}}

Increase at odds with meat demand
Compaxo limited the change this week to a plus of €0,03, which means a price of €1,45. This puts the company behind their colleagues. Van Rooi Meat increased their pork price by €0,05 to €1,47. The fattening pig price of Westfort and Pali Group also increased by €0,05 to a total of €1,48.{{dataviewSnapshot(2_1621608666)}}

Traders' optimism for this week was partly based on the expectation of a strong plus in Germany. The Nord/West Notierung increased by €0,08 to €1,54. The increase is at odds with the demand for meat, Tönnies reports in their weekly market report. Like Vion, Tönnies also points to the lack of conditions that promote meat sales. Nevertheless, Tönnies and Westfleisch increased their fattening pig prices with the same change, reaching €1,54 and €1,55 respectively.{{dataviewSnapshot(2_1621608820)}}

Internet fair at the highest level
The forecast for week 21 was given color today (21/05) by the German Internet Exchange. Based on 7 traded lots, which was all the supply, the Internet exchange rose by €0,04 to €1,65. This means that the Internet Fair is back at the highest level of this year. The same price was quoted on March 12, and all the supply was traded at that time. This involved 19 parties. The DCA Stock Price 2.0 increased by €0,11 to €1,54 on that day. However, with the expected stock market price for week 21, the difference with the Internet stock exchange has become smaller.

Traders are opting for an increase in the Stock Exchange again for week 21. The quotation for slaughtered pigs amounts to €0,05 with a positive change of €1,59. The quotation of live pigs underwent an upward adjustment of €0,04, reaching the price level of €1,20.

View the latest listing here.