In recent months, pigs have been peddling again, but sales are now clearly improving. Is the market at a tipping point?
Although the supply of pigs for this week cannot yet be called tight, animals ready for slaughter appear to be in somewhat better demand and sales are running more smoothly than a few weeks ago. This is also evident from the declining slaughter weights in the Netherlands. According to data from the Netherlands Enterprise Agency, this is now an average of 98,50 kilos. In just a few weeks, this average has dropped by no less than 3 kilos. A sign that the surplus of pigs has been properly eliminated.
Pigs in better demand
Traders report that Dutch slaughterers want to slaughter more than a few weeks ago. In addition, the export of pigs to countries such as Spain and Poland is also continuing very well. However, the predicted heat in the coming week may temporarily negatively affect flows towards these countries. The pig trade could receive a further boost if German purchasing prices change positively this week, insiders report. All in all, sales of pigs ready for slaughter are clearly more favorable than in recent weeks.
The fact that the slaughterhouses have a greater interest in filling the hooks smoothly is certainly also due to the fact that the meat trade is developing more friendly. This week, the whole pig carcass gains approximately €0,06 per kilo in value, according to the DCA mutations. Hams and necks in particular are selling better, but ribs, shoulders and middles are also in higher demand.
German price stable
German slaughterers processed fewer pigs last week than the week before due to Whit Monday. A total of 681.082 pigs were hanging on the hooks with an average weight of 97,1 kilos.
For the time being, the positive undertone in the market is not enough to help the already relatively high German VEZG rating to a higher level. This has been set unchanged this week at €1,80 per kilo of slaughtered weight.