News DCA Benchmark Price - Pigs
Storm blows over, but pig market remains gray
Pig prices have been under immense pressure from slaughterhouses in recent weeks, but have finally held up. At the moment, calm has returned to the market, although the bright spots remain sparse.
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The bottom under the pig prices is not concrete yet, but it is starting to harden a bit. The attempt by Vion last weekend to significantly lower the payout price in Germany failed. Subsequently, the German pig price (VEZG) remained stable on Wednesday at €1,80 per kilo. The conclusion is that with this stability, many negative market expectations have been surpassed. Slaughterhouses realize that disproportionate reductions lead to skewed faces. And even more than that. Only Van Rooi made a decrease of 1 cent, but that was on the high side compared to other quotes.
Situation remains gray
Underlying the situation in the pig market has not changed much this week. The supply of pigs ready for slaughter is and will remain ample. That is coming to the surface now that there is a slaughter day next week in connection with Ascension Day. Meat sales are still waiting for impulses. And if there are, they will be crushed by the large stocks of meat that are still hanging over the European market. The declining exports outside Europe (particularly in China) lack the power to get the market moving. You can assume that sales within Europe will continue to determine sentiment in the coming months.
Meanwhile, pig and piglet prices are still below cost price and the sector is hoping for better times. The wheat price on the Matif set a new record early this week, well above €400 after India announced an export freeze. This means that cost price relief is not in the pipeline for the time being, although wheat prices have eased back somewhat. The compound feed price indicator of Boerenbusiness foresees a considerable price increase for fattening pig chunks up to and including October.
DCA Scholarship price unchanged
The pig price may have stabilized, but an increase is not in sight. It is possible that the situation will improve somewhat when the broken slaughter weeks are over and growth slows down due to a heat period and barbecue demand arises. This will be the case in June at the earliest. The DCA Stock Price 2.0 thus remains at €1,64 per kilo for the slaughtered pigs, while the price of live pigs is stable at €1,30 per kilo.
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