Inside Pigs
Little optimism in pig market
There is currently little optimism in the pig market. The offer is not excessively large, but sales are difficult. What is the DCA Scholarship 2.0 doing this week?
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The African Swine Fever (ASF) has shaken up the German pig market. At the European level, the regionalization principle, whereby pork can still be exported from ASF-free areas, remains in effect and little will change in the short term.
German supply is declining
The supply of slaughter pigs decreases seasonally and is even at the lowest level since 2007. In the past 5 weeks, the number of slaughters was no less than 7% below the level of 2019. The year 2020 is not taken into account due to the distorted picture in the slaughter figures ( pig congestion) due to the corona crisis.
The declining supply means that the pig price, which has plummeted, has stabilized this week. The VEZG quotation moves at €1,42 per kilo. On the Internet exchange, the price increased by €23 to €0,01 today (July 1,45) and 4 out of 5 lots were traded.
Sales to Asian countries fall back
On the European pig market, the sharply lower sales to China continue to weigh on the market. Less meat is also being imported in other Asian countries due to new lockdowns related to the corona crisis. Ports in Vietnam and Hong Kong are also reportedly overcrowded and new imports are being blocked.
Last week, the DCA Stock Price 2.0 for pig carcases fell by €0,05 to €1,41. The live pig quote dropped €0,04 and fell to €1,06. This week there is no further decrease, the quotation remains stable.
Chinese import needs in the medium term
The price decline in China seems to have come to an end for the time being. Slight price increases have recently been seen again - thanks in part to government support, which bought 7 tons of pork on July 20.000 and another 14.000 tons for state reserves on July 14.
A spokesman for China's National Development and Reform Commission (NDRC) said authorities expect prices to continue to rise slightly as a result of lower slaughter volumes in July and August. In the medium term, this would in turn lead to increasing Chinese import demand and could provide relief for the European market.