Analysis Pigs
Pig market is left with nothing but patience
Pig prices are in the basement, but the market has to be patient before it can start moving upwards. The large stocks of pork stored in Europe act as a kind of shock absorber in a negative sense.
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After a turbulent January, the pressure on pig prices has faded into the background. At the same time, it is unlikely that the market can pick up quickly. The demand for meat is at a low level at this time of year. A period of frost could provide the desired stimulus. In contrast to the severe frost period we had last year in February, we are now experiencing mild and gloomy winter weather in Northwestern Europe.
Large meat supplies
If incentives are already emerging on the demand side, high inventories are an obstacle. This week it was announced that a... record volume of pork is stored. Cold stores in other European countries are also reportedly full. Although the slaughter figures in Germany have been downright low in recent weeks (well below 800.000), this does not promote incentives. Retail is aware of the situation and is sitting back lazily, meat sellers indicate resignedly.
Because the slaughter figures due to omikron are disappointing, the pig supply remains ample. Traders with sales in Germany in particular experience this strongly.
Stock market price unchanged
In short: the market is not in favor of realizing an increase. Hopes in the market are pinned on spring, when the sharp decline in the pig herd in Germany may cause a surprise effect. For now, the DCA Exchange Price 2.0 remains at €1,18 per kilo for slaughtered pigs and the price of live pigs at €0,89.
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