Inside Pigs
Pig market is characterized by grumbling and grunting
All hopes of an increasing demand for meat and thus a positively developing pig market seem to have been dashed. It will also be at least code orange for the coming week. What does this mean for the DCA Scholarship Prize 2.0?
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The expectations for this week were that a significant reduction should have been sufficient to hit a bottom somewhere. Yet that feeling is fading away, now that German slaughterhouses are offering a Hauspreisse. Tönnies and Westfleisch have both announced a Hauspreisse of €1,40 this week.
Yet the effect of the Hauspreisse seems to be more mood-setting than the fact that many pigs are actually paid for it. A large part of the pigs purchased every week are paid for under contract at the North/West quotation. The Hauspreisse mainly concerns the free part. The question is whether the North/West will drop to the level of the slaughterhouses in the coming week. The Internet Exchange shed some light on this with a 2 cent increase and 4 offered and traded lots.
Slaughter weights are declining
The signals are also on red for next week, slaughterhouses report. The positive thing is that the warm days of these weeks have slowed down the growth of the pigs. The slaughter weights are decreasing slightly. The beautiful summer weather with sporting events and the further phasing out of restrictive corona measures are also positive circumstances. But these elements do not bring the momentum to the market that was hoped for. Insiders indicate that less pork has been consumed so far due to less grilling and BBQ activities. Now that restaurants are opening more, this reflects more positively on the demand for beef.
The aftermath of stagnant sales of meat parts to China is causing high meat waves in Europe, where there is currently a lack of demand and sales. Many parts await a stopover in a cold store, where a considerable stock is already stored. As a result, the appetite for meat seems frozen for a longer period of time. The changes at slaughterhouses in recent weeks are not expected to be the last.
Child of the account
In the land of farmers there are grumblings that everyone makes money from pigs and that they bear the brunt of the bill. All the ingredients for a positive pig market are present. But the fact that a price increase is not an option must really be found in the sales of the meat.
The current market picture of the pig market leads to the following changes in the DCA Exchange Price 2.0. For slaughtered pigs this is a minus of €0,05, bringing it to €146. For live pigs, traders' statements amount to a negative change of €0,04, which means a quote of €1,10.