Analysis Pigs
Varkensmarkt is already in full swing of spring
Although it is still January, the spring revival already seems to be taking hold on the pig market. The demand for ready-to-slaughter pigs is much better than expected, revealing a tight supply. Dutch slaughterhouses have partly contributed to this themselves. The DCA Scholarship Award takes a big step up.
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The mood swing at the pig market is almost unbelievable. Just two weeks ago, the pork price was under considerable pressure due to the drive for reductions by slaughterhouses. Slaughterhouses now have to go to great lengths to secure sufficient supply. Vion's 'Houdini act', by midweek Increasing the pig price retroactively is indicative of the shortage. The Dutch slaughterhouse market leader had to go along with the four-cent increase that the other slaughterers implemented on Wednesday. By not waiting for the new week, Vion tried to repair the damage by means of a correction.
Offer determines vote
The rising pig prices are mainly a supply issue. Due to the continued decline in animal numbers in Northwestern Europe, the oversupply has been reduced considerably. There was no question of a piglet at the turn of the year and there are already shortages. That bodes well for the spring revival that drives up prices every year. These are interesting developments for pig farming in the Netherlands. It will undoubtedly cause some headaches for slaughterhouses.
Slaughterhouses partly contributed to the shortage of pigs ready for slaughter by exerting considerable pressure shortly after New Year's Eve. While German pig prices remained relatively stable, Dutch slaughterhouses made several reductions. This has led to the pig trade driving pigs to Germany more often. In the first three weeks of this year, around 5.000 extra pigs went to Germany. They would love to have the pigs there, although this is not said out loud. By frantically raising prices again, Dutch slaughterhouses are trying to put themselves back on the map. Incidentally, the 314.711 in the past week cannot be described as low, which implies that the will to slaughter is quite high.
The rising pig prices do not match the meat market where sales are not wild. China is keeping aloof and European retail only orders what is absolutely necessary, according to what people say. Insiders do say that activity is increasing again.
DCA stock market price on the rise
The Dutch pig trade is calling for significant price increases next week, some of which are corrections. Based on the statements, the DCA Exchange Price 2.0 for slaughtered pigs increases by €0,05 to €1,89 per kilo. The price of live pigs increases by €0,04 to €1,47.
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