How does DCA Scholarship react to German plus?

The fact that the VEZG quotation increased by €0,05 to €1,25 this week is a desirable development for many in the sector. However, the fact that the large slaughterhouses in Germany subsequently announced a Hauspreise leaves a sour aftertaste. As is often the case, Tönnies and Vion are reluctant to increase and are hiding behind the weak meat market. Pig farmers in Germany are firmly convinced that the slaughterhouses will take the step next week and will wait with deliveries until the new price is known on Wednesday.

The producer associations in Germany may have taken too great a risk by immediately increasing the quotation by 5 cents; a plus of, for example, 2 cents might have been followed. Be that as it may: In any case, the road to the top has begun, but – as is often the case – the first meters are the hardest.

In addition to Germany, increases were also observed in Spain, where the pig price rose yesterday (17/02) by €0,037 to a level of €1,125. The pig price of Danis is also on the rise and is trading at €0,80, which means an increase of €0,05.

Meat market is improving 
Sales opportunities on the meat market are improving. The corona measures are now no longer an argument for lowering prices. Moreover, the pig supply in Europe is drying up and this will also affect the meat market in the long term. Because meat supplies are still ample, this will probably take a while.

Pig prices have hardly budged since the beginning of October. On October 1, 2021, the DCA Exchange Price 2.0 (Exchange) was €1,19 for the slaughtered pigs, which meant a decrease of €40 for week 0,05. No one could have imagined that the pig market was then at the beginning of a long, virtually unchanged period. This level still had to be adjusted in week 4 2022, when the slaughterhouses adjusted their prices downwards. But after nineteen weeks, an opportunity now appears to present itself for an increase in the Stock Exchange. High time and desperately needed, insiders report.

The increases in Europe seemed to leave the Netherlands unaffected, but that turned out not to be the case. Of the Dutch slaughterhouses, only Westfort increased by €0,02 and amounted to €1,11. Next week, the other slaughterhouses will have to show whether they want to follow the Westfort example. The fact that this is not a given is evident from the ifs and buts expressed by a number of slaughterhouses, which temper the 'euphoria'. And that is frustrating for the farmer who has not been able to benefit from the demand for meat for so long and was only told that an increase was not possible, not even towards the holidays in December. The argument that there are enough pigs is a muddled picture. Slaughterers don't forget your masters, seems to be the thinking. 

Traders who have given expected prices for week 8 are betting on an increase in the stock exchange. The explanation of the DCA Exchange Price 2.0 from DCA Markets shows that the changes vary considerably, but also have one similarity and that is that the refrain of unchanged is put aside.

The DCA Exchange Price 2.0 for slaughtered pigs increases this week by €0,03 to €1,21. The change in the price of live pigs amounts to €0,02 and therefore rises to €0,91.

Click here for an explanation of the listing.