Historic pig market price rally has come to an end

After three wild weeks during which prices rose sharply, the German pig price leveled off this afternoon at €2,28 per kilo. Although the revival did not last very long, the price did add almost 30 cents in those three weeks. In the Netherlands, slaughterhouse quotations are still increasing.

It is striking that the Compaxo quotation rises by 5 cents to €2,09, thus exceeding Van Rooi's. This puts Compaxo on an equal footing with Westfort. Usually Van Rooi's calling price is slightly higher. The various changes in recent weeks confirm the continued shortage on the slaughter line. 

Historic weeks
Looking back on the past few weeks, the rate of increase in Germany was not only very rapid, the market also reached levels that would have been thought impossible in the past. In the meantime, a new reality is taking place, in which the price may structurally remain at €2. In the short term, there is at least sufficient margin to maintain this. With regard to the cost price, it would in any case be very desirable for pig farmers. For slaughterhouses, the significantly higher prices are a significant burden on working capital, or so you can assume.

The leveling off German price will probably create more peace in the market. Supply is still tight and meat sales options are improving, with parts prices also rising rapidly. The coming weeks will reveal whether the spring revival has already occurred, or whether more increases may be in store for March or April.