Pig market gets on steam due to summer weather

Dutch slaughterhouses showed their best side this week. Last week, the DCA Stock Price 2.0 (Stock Exchange) rose by 2 cents, but that movement was surpassed by one cent. Compaxo even increased by 4 cents. Moreover, the Dutch market showed that it could find its way up independently of Germany, because all quotations remained in place there on Wednesday. Incidentally, it cannot be concluded that the Stock Exchange was too unambitious last week, because then the market felt even less convincing.

In Germany, too, an increase in the pig price is only a matter of time. The Internet exchange is now 8 cents above the VEZG quotation, which remained stable on Wednesday at €1,80 per kilo. And although the large slaughterhouses there are tempering the positive market stories, the German market is also very likely to move upwards.

Demand is increasing
The pigs are pulled more, according to traders. The full slaughter weeks facilitate this, just as the seasonal supply dries up. Combine this with some growth retardation due to the heat and there is actually a draft in the air. However, the heat is only short-lived, so growth slowdown is not really an issue at the moment. Moreover, the slaughter weights are high enough to be able to deliver a little lighter. This is also happening, because slaughter weights have fallen below 100 kilos in recent weeks and show a seasonal downward trend.

The beautiful sunny and warm summer weather also gives the meat market impulses. The BBQ will be fired up in many places this weekend. This benefits sales. Rising meat prices are the result. The tourist season is also taking shape, which means that southern European countries are stocking up on larger volumes. The export markets outside Europe have not yet shown a concrete improvement in demand, although there are more positive expectations about China later this year. This could be a nice stroke of luck.

Significant increase
The rising pig prices are of course received positively in the sector, but margins are still under pressure. Historically, the pig price is not bad, but the current high grain prices make this pale. However, the pig price is again taking a big step up, based on input from the trade. The DCA Stock Price 2.0 increases by €0,05 to €171 per kilo. The price of live pigs increases by €0,04 to €1,35 per kilo. It remains to be seen whether the Dutch slaughterhouses will follow suit again. 

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