Analysis Pig market
Stock price surprised with small increase
The pig market feels unexpectedly more positive. While the German market is still in a dilemma, the Dutch pig market is moving. Whence this revival?
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First of all, the developments this week. The mood in the German market remains restless. The VEZG quotation is stoically unchanged at €1,85 per kilo, but the large slaughterhouses remain 10 cents below that in their pricing. For the third week in a row, prices are already out of line. In the meantime, the supply is drying up quickly with the weekly slaughter figure just above 700.000 pigs. Due to the lackluster mood on the European meat market, the shortage is not yet an issue.
Chinese demand improving
The mood on the Dutch pig market is improving visibly, just as positive signals are also coming from Denmark. Unlike Germany, slaughterhouses in these countries can go to China. And it is precisely there that demand is suddenly improving. Meat sellers say the number of orders is increasing. In that regard, it is positive that Van Rooi Meat has been able to return to the Asian country for a week.
Traders say the pigs are being pulled more. Judging by the slaughter figures, however, a clear downward trend is visible. The slaughter figure has been below the 300.000 mark for three weeks in a row. In addition, the weights drop rapidly. The average slaughter weight is now well below 98 kilos. Just a few weeks ago, this was still close to 100 kilos. This development gives the market air, although the decrease in slaughter fits in with the seasonal pattern.
Slight increase for the Stock Price
In short: the panels on the Dutch pig market are slowly shifting. Slaughterhouses do not immediately deny the improvement, but they are also not excited. The improved sentiment has yet to take shape, they indicate. Nevertheless, there is room in the market for a slight increase in the DCA Stock Price 2.0. The quotation for the slaughtered pigs increases by €0,01 to €1,75 per kilo. The quotation for the live pigs increases in the same order of magnitude to €1,38. It should become clear in the coming week whether the Dutch slaughterhouses will follow this movement.
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