Classic battle between trade and slaughter

Things seemed to calm down for a while after the quotes hit a bottom two weeks ago. However, unrest is rearing its ugly head again. The German branch of Vion has announced a Hauspreise of €1,85 per kilo. Other German slaughterhouses would also consider such a discount from next Monday. Earlier this week, the VEZG quotation remained unchanged at €1,90 per kilo, but the pressure is building up again.

The Netherlands can go to China
The Dutch pig market is less susceptible to this price pressure. In contrast to German slaughterhouses, Dutch pork can end up in Asian markets. This is where the problem comes in, because China is increasingly demanding higher meat volumes. The flag cannot be raised yet, because the Brazilian competition is stiff. Chinese people are also price-consciously shopping, insiders indicate.

Meanwhile, improved export demand is seeping into the sector. Dutch pig traders are therefore pushing for an increase in the pig price. The fact that slaughterhouses also slaughter on Saturdays is proof that the (square) valorization is good, or so the idea is. Slaughterhouses contradict this and say that Saturday slaughter is a gesture to accommodate the ample pig supply. The latter is not an argument of opportunity. Pig traders have been talking about a wide range for some time, although the numbers are currently smaller than in recent weeks.

High slaughter numbers
A number of pigs have also been slaughtered in recent weeks. Last week, more than 312.000 pigs were on the hook with an average slaughter weight of 99,50 kilos. This means that the trend shows a slight decrease, because in the previous week more than 10.000 additional pigs were slaughtered. This is in line with the picture that traders paint. In Germany, slaughter numbers increased slightly to well over 750.000 last week.

While meat sales outside Europe are improving, sales within Europe are still tame. The prices of carcass parts are generally stable and there is no question of a Christmas demand yet. Of course, there is still some time for that. Although some traders emphatically advocate an increase in the DCA Exchange Price 2.0, the market is not (yet) ready for this. It is difficult to estimate at the moment whether the German slaughterhouses will be able to control the market next week. The Northwest European market is certainly not boring.

Based on the statements, the quotation for the DCA Exchange Price 2.0 for slaughtered pigs remains at €1,79 per kilo. The price of live pigs is stable at €1,40 per kilo.

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