Analysis Pigs
Small plus DCA Stock price on pig market
After a wild rollercoaster ride in recent weeks, the question now is how much increase potential the pig prices in Europe still have. The persistently tight supply in Germany and the strongly improved meat demand provide the market with a lot of support. Is it enough for an increase in the DCA Stock Price 2.0?
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The fact that the VEZG quotation this week increased by €0,07 to €1,92 per kilo, especially for pig farmers, was a pleasant surprise. After all, the expectation was that the German pork price would level off, or otherwise show a minimal increase. The fact that the Internet Exchange rose by 5 cents today to €2,05 can be seen as confirmation that the increases are not hot air. Despite a lot of enthusiasm, the German slaughterhouses are following suit, because otherwise too many hooks would remain empty to meet contract obligations.
The fact that the high pork price is a burden on slaughterhouses is not too much of an emphasis. The groups (Westfleisch and Vion) that have so far published their annual figures for 2021 have had to accept a loss of millions. The red numbers also caused a shock reaction on farmers and in the trade.
Is DCA Stock Price too tight?
A number of traders indicate that the DCA stock exchange price is too tight compared to the slaughterhouse quotations. It is indeed a fact that the stock market price, in terms of rate of increase, is about 6 cents ahead of the quotes of Compaxo and Van Rooi. Nevertheless, many traders are also calling for an increase for next week, with the understanding that the top has not yet been reached. An unchanged mutation would then be a bad signal.
Based on the statements, the DCA Exchange Price for slaughtered pigs increases from €0,02 to €1,81 per kilo. The price of live pigs increases by 1 cent to €1,40 per kilo.
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