Analysis DCA Benchmark Price - Pigs
Slaughter rate plummets, pig supply remains tight
The pig market is in the middle of a classic Christmas revival that is generating much more than was previously estimated. Despite increasing resistance from slaughterhouses, the DCA Stock Exchange price takes another step upwards.
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There is never a dull moment at the pig market in the last weeks of the year. Certainly not this year, because the market is in full swing, also in surrounding countries. For example, the German pig price rose again this week by €0,05 to €2 per kilo. The trendsetting Internet fair has already risen to €2,10 per kilo. This suggests that the German VEZG listing will take another step next week.
Resistance
The resistance of slaughterhouses is now increasing significantly. An increase in the price of pigs had been calculated in advance, but they sometimes feel that the current rate of increase is too fast. There is therefore considerable resistance, although meat prices are also moving upwards quite quickly. The demand for meat is still high. Retail in particular is in need of large volumes to meet Christmas demand. Due to the scarcity and high prices of beef and poultry meat, pork seems to be more in demand this year than ever.
Exports outside China are also showing improvement. The most recent export figures from Eurostat for September show that more than 20.000 tons went from the Netherlands to the Asian country that month. This is an increase of approximately 25% compared to the same month last year. In the run-up to the Chinese New Year, buyers are still active.
Slaughter rate drops
The major decline in the Dutch slaughter figure is striking. This dropped last week from 343.547 to 309.045 pigs slaughtered, with the average slaughter weight increasing again. This decline does not fit with the seasonal pattern and can partly be explained by the fact that slaughterhouses sometimes no longer slaughter on Saturdays. It cannot be traced back solely to the drying up of pig supply, although many traders believe this is the case. "The pigs are being pulled by slaughterhouses," it is stated.
DCA Benchmark Price - Pigs
Despite the counter pressure from slaughterhouses, the DCA Exchange Price 2.0 is rising again. The price of slaughtered pigs increases by €0,03 to €1,92 per kilo. The price of live pigs increases by €0,02 to €1,51 per kilo.
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