Analysis Pigs
DCA Scholarship Award goes along with slipstream slaughterhouses
In the last week of 2022, Dutch slaughterhouses surprised with a lower pig price. This also pushes the DCA Stock Price down for the first week of the new year.
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A good fourth quarter on the pig market ended on a downer this week. With the reductions at Dutch slaughterhouses, part of the Christmas bonus has already gone up in smoke. This is a setback for the primary sector, because sales prices are often still below cost price.
On to 2023
The new year is ahead, with the meat market likely to get off to a slow start. This is historically common, as many meat processors in Europe don't get back up to speed until the second week of the new year. It is still uncertain how meat sales will recover in the new year. Purchasing power is under pressure due to high inflation. The other side is that many consumers see inflation adjustments incorporated into wages and that eases the pain.
There is still a lot of uncertainty about the export markets outside Europe sales opportunities in China, now that the country is flooded with corona infections. In the short term, this is negative for sales opportunities. In the longer term, the 'opening' of the Chinese economy could actually lead to additional demand. Futures markets for palm oil and soybeans are already preparing for additional Chinese demand, fueled by speculators.
Offer determines the mood
The pig supply will probably be the most decisive for the market mood in the new year. Looking ahead, there is certainly no oversupply lurking. Not in Germany anyway, but the supply is not overflowing in the Netherlands either, with average slaughter weights under 100 kilos. It therefore remains to be seen whether the German pig price will also fall in early 2023. A stable price would be a windfall for pig farmers in our country who are judged on the German quotation, but that is not the case yet.
The DCA Exchange Prize 2.0 must follow the slipstream of slaughterhouses, according to the statements at DCA Markets. The price of slaughtered pigs drops by €0,06 to €1,86 per kilo at the end of the old year. The price of live pigs increases by €0,05 to €1,46 per kilo. Rarely has the stock price started so high in the new year, but that is little consolation.
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