Analysis Pigs
DCA Stock price 2.0 gives way to price pressure
The pig market has had a restless week. Under pressure from slaughterhouses, the quotations have cracked and that does not affect the DCA Stock Price 2.0. The changes are causing irritation in the sector.
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The gap of 6 cents between the German pork price (VEZG) and Tönnies and Vion was closed on Wednesday by looking for a solution in the middle. The quotations came together at €1,20 per kilo, which means the hauspreisen be off the air. Dutch slaughterhouse quotations also fell, with Van Rooi, Westfort and the Pali Group making the mildest reduction. The fact that Van Rooi is included is in a sense striking, since the Brabant meat group cannot export to China, while the rest of the slaughterhouses in our country can.
Meat market is not running
In the background, slaughterhouses continue to vote for further reductions. This is to the annoyance of many in the sector who are fed up with the situation with persistently low prices. Slaughterhouses claim that the poor meat market offers no other options than to cut quotations. Everything that can go wrong, goes wrong. Meat sales are calm, which is inherent to this period of the year. Due to corona (quarantine rules), less can be deboned and the pig supply is oppressively large. In addition, the outbreak of African swine fever in Italy is causing unrest, while the Asian markets are failing.
The slaughter figure in the Netherlands shows an increasing trend. More than 316.000 pigs were slaughtered last week with an average slaughter weight of 101,6 kilos. In Germany, the slaughter figure actually dropped to 806.000. This figure underlines the unambitious slaughter plans that German slaughterhouses have, something that Dutch traders with sales in our neighboring country also notice. The pigs will also be difficult to place next week.
DCA Stock price down
In the long term (March, April), the shrinkage of the pig herd will make the market more transparent, especially when consumption picks up again. The coming weeks are likely to remain difficult. Due to the lower slaughterhouse quotations, the DCA Exchange Price 2.0 cannot avoid a reduction for next week, but the change remains limited. The quotation for slaughtered pigs drops by €0,01 to €1,18 per kilo. The price of live pigs falls in the same order of magnitude and amounts to €0,89.
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