Analysis DCA Benchmark Price - Pigs
Pig price on course due to flatter landscape
After a price correction, calm has returned to the pig market. An increase is not currently in the picture, just as a further price reduction is out of the question. This means that the DCA Stock Price 2.0 can only go one way, and that is sideways.
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The stable change of the German VEZG listing this week at €1,95 per kilo contradicts the arguments of Dutch slaughterhouses to further reduce the pig price in our country. That would be unpalatable to primary producers who were certainly not happy with the reductions in recent weeks.
Peace returned
Calm has now returned to the market, despite the ample supply in the Netherlands due to two consecutive broken slaughter weeks. The supply in Germany is also reasonably in line with the slaughter plans, although a full slaughter week is coming up there. At the same time, this provides some breathing space on the Dutch market.
The European demand for meat is stable. Slaughter figures in Europe generally decrease towards the summer months and that expectation also applies this year. When the tourist season begins in the southern countries and temperatures continue to rise in north-west Europe, this may stimulate the demand for meat. However, this is not (yet) an issue.
Stable change in DCA Exchange Price
Good export demand is necessary for a further increase in pig prices. This does not seem to be an issue for the time being, which means that sales in Europe should boost the mood on the market. As indicated, this is not an issue at the moment. This means that the DCA Exchange Price 2.0 remains nothing but a stable change, as has been opted for by many traders. The quotation for slaughtered pigs remains at €1,72 per kilo, while the price of live pigs remains at €1,34.
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