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Analysis DCA Scholarship Price 2.0

Nervous pig market remains intact

8 July 2022 - Wouter Baan

Tension in the pig market is building. The outbreak of African swine fever (ASF) has a disruptive effect, also in the meat trade.

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The pig supply in our country can be described as large to very large. A number of slaughterhouses are taking in fewer pigs, according to traders. Pig farmers, in turn, are more willing to deliver. This is out of fear that ASF will unexpectedly strike in the Netherlands as well. In that case, the pig prices could just lose 20 cents, or so is the idea.

In recent weeks, the incentive to deliver in Germany has diminished, because the price difference with the Dutch quotations has virtually disappeared. German slaughterhouses are in any case reluctant to accept Dutch pigs, according to traders. All this means that the Dutch market is filling up. Due to the higher temperatures next week, that could also decrease again, because growth slows down. 

Meat stocks are being phased out 
There is also 'AVP fear' in the meat trade. Customers make grateful use of this and adopt a wait-and-see attitude. Dutch slaughterhouses would like to reduce their meat stocks. This is especially true for the parts that go to Asia. Those stocks have actually been expanded in recent months, as the Chinese market could become more demanding later this year. To continue to 'speculate' on that, however, is left soup with AVP in the backyard.

You can tell from everything that the pig market is nervous. Specifically, price reductions are not yet on the agenda, but - if things go wrong - this could become reality. German slaughterhouses are also making a comeback. Although some traders opt for a cut, the DCA Stock Price could remain at $1,74 per kilo for the third week in a row, while live pigs remain at $1,37 per kilo.

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