Analysis Pigs
Pig market has to go through a difficult phase
The Easter weekend and King's Day are approaching. With the loss of slaughter days in the offing, this slows down the sales of finishing pigs. Meat sales are waiting for incentives. How does the DCA Scholarship 2.0 react to this situation?
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
It is currently feeling chilly in the European pig market, after the temperature rose in March. That the quotations are correcting downwards is proof of this. Based on the historic price rally that is just behind us, this can be seen as a natural (and not a worrying) development.
In the last full week before Easter, the supply is ample, or in other words the demand for pigs is laurel. Moreover, the incentive to give up pigs is greater now that prices are deflecting downwards. The high slaughter weights provide space for this. This situation is likely to play out in the next two to three weeks.
Cold weather inhibits meat sales
Meat sales have fallen somewhat, both to the retail and the processing industry. The peak demand around Easter has now been largely filled by slaughterhouses. In addition, the cold spring weather in northwestern Europe is slowing down sales. At the moment it is not terrace weather, let alone barbecue weather. It will get better from next week, although temperatures will remain below 20 degrees. A recovery in demand is therefore not yet in sight.
The pig market is currently moving as it has historically been. Pig prices often pick up quickly in early spring, only to slow down afterwards. Usually a second sprint follows in the run-up to the summer holidays. Such a scenario is also hanging over the market this year. All the more so because pork consumption can probably benefit from the expensive beef and scarce poultry meat in Europe.
Difficult phase
It cannot be ruled out that pig prices will face a correction later in April or early May. The margins at abattoirs are quite depleted. A vote is thus made to implement a reduction when the opportunity arises. The cancellation of slaughter days can be an opportunity for this. Whether the soup is also eaten so hot remains to be seen.
The statements for the DCA Stock Price are based on an unchanged quotation. This means that the price of slaughtered pigs remains at €1,78 per kilo, while the price for live pigs remains at €1,39 per kilo.
Click here for an explanation of the listing.