Analysis Pigs
DCA Stock price continues to rise, but less quickly
The historic price rally in the pig market is nearing its end. In the sense that prices are slowing down, although sentiment in the market is still positive.
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The pig market has reset considerably in recent weeks. The long-awaited effect of the restructuring in the Netherlands and Germany is finally coming to fruition. The supply is extremely tight, especially in Germany. In the past week, the slaughter figure dropped to 730.000. Knowing that the slaughter figure could easily peak above a million, the slaughter capacity that is as large as in the Netherlands remains unused. This means that the fixed costs have to be spread over fewer slaughters and that is painful. All the more so because contract prices set for meat sales are already straining in view of the rapidly rising pork price.
Supply in the Netherlands less tight
In the Netherlands, supply is relatively less tight and the slaughter figure varies from week to week around 315.000. The shortage in our Eastern neighbors is also creating a mood here, because pig farmers 'threaten' to supply Germany if the price difference becomes too great. For the time being, the quotations in the Netherlands remain reasonably in line with German prices, thus depriving them of that incentive.
In the meantime, meat sales continue at full speed, slaughterhouses indicate. However, meat prices (contract prices) are not yet in line with pig prices, which are now slowing down in Germany. The Internet stock market moved stably this week, which underlines the leveling off trend. Nevertheless, the pigs remain in high demand. Based on the statements, the DCA Exchange Price increases by €0,05 to €1,79 per kilo. The price of live pigs increases by €0,04 to €1,39.
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