Analysis Pigs
Does DCA Scholarship 2.0 follow the German approach?
The German pig prize has started its approach, with the pace even higher than in the Vuelta or Tour de France. The big question is: Can the Dutch quotations stay on track?
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These are special times in the pig market, historical times even. In recent history, prices have never gone up as fast as they are now. although the price rally received with acclaim in the industry, it also sparks a lot of discussion. Traders and pig farmers are bickering about delivery times for both pigs and piglets with the aim of being able to deliver on the new and higher quotation. This sometimes costs the trade heavy money, as has been stated several times. The push market of recent months has turned into a heated demand market.
The German pig price (VEZG) rose this week by €0,25 to €1,75. The Internet exchange has now climbed to €1,99. This suggests that pig prices in Germany will also rise sharply next week. The tight supply puts slaughterhouses on the brink. The hooks must be full to be able to deliver the delivery obligations to the retail sector. However, slaughterhouses miss out on large numbers of pigs with a Hauspreise. Supply contracts are canceled on the basis of force majeure, which naturally damages the image of slaughterhouses. Or at least risk it.
dilemmas
Dutch slaughterhouses also view the developments with concern. The supply here is relatively less tight than in Germany, although the pigs are certainly in good demand. However, the German rise rate cannot be kept up with, it is indicated. This presents abattoirs with a dilemma. If the prices here lag behind, the sale of live pigs to our eastern neighbors will increase and the supply will dry up here. Nevertheless, slaughterhouses in our country are making mood that they let the German quotations escape and increase less quickly. Whether the soup is also eaten so hot is still a thing of the future.
The figures for the DCA Stock Price 2.0 are very divergent due to the tensions in the market, as can be read in the explanation of DCA Markets. The quotation for the slaughtered pigs increases by €0,25 to €1,74 per kilo. The price of pig carcasses plus by €0,20 to €1,35. These are record increases.
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