The pressure on pig prices continues, despite the limited pig supply. The stable German price strengthens the foundations of the Dutch quotations, although slaughterhouses remain unpredictable in their pricing. However, the DCA Stock Price is not preparing for a reduction.
In the first weeks of a new year, the pig market is always turbulent. The meat processing industry is still in holiday mode and the fresh market is at a standstill after the holidays. The pig supply is often oppressively large, but that is not the case this year. Many traders get rid of the pigs just fine. If not in the Netherlands, then in Germany, which is often more commercially interesting. This is certainly the case now that the German pork price (VEZG) remained stable this week, while Dutch slaughterhouses have reduced prices between Christmas and New Year.
Carcass parts under pressure
Despite the stability this week, the pressure on the pork price has not yet passed. Slaughterhouses are making a lot of noise, including the big players in Germany. Meat sales are disappointing, it is reported. This has partly been taken into account, but the downgrades of many carcass parts are hard to bear. However, not every slaughterhouse is willing to let the pig price bleed for this, because this only reinforces the negative mood on the meat market. However, it remains to be seen what slaughterhouses will change next week. The negative surprise of two weeks ago is still fresh in our minds.
The difficult meat sales are offset by a limited, or at least a manageable, pork supply. The delivery weights are relatively low and at many fattening pig farmers and closed farms there is no piglet pressure. If there was an oversupply, the panels on the pig market would have wobbled next week anyway, but now there is a chance to remain unchanged. This means that the DCA Exchange Price can remain at €1,86 per kilo. The price of live pigs remains the same at €1,84 per kilo.
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