Tight supply does not yet lead to a positive pig price

The pig market has been in a stable phase for weeks, with prices showing little or no movement. However, it increasingly looks like that stable period is coming to an end. The question is when. The tight pig supply gives sentiment to the market, because slaughterhouses want to outdo each other. According to traders, there are simply too few pigs to meet demand. This mainly occurs in Germany, but also on the domestic market.

Internet stock market significantly higher
The Internet Exchange in Germany responded today by increasing by €0,09 to €2,50 per kilo. This set a new record. The question is whether the unexpectedly significant increase exposes a shortage of pigs. The situation is remarkable, because just this week a slaughter day was canceled in Germany. Moreover, there will be another slaughter day after next week, because of Ascension Day.

The mood on the pig market is mainly caused by the tightening supply. The meat market is still characterized by tepid demand, partly caused by the cold and wet spring weather. Although temperatures are slowly rising, there is no barbecue weather yet. High inflation is also putting a brake on pork consumption, but despite this, stocks in cold stores are not increasing significantly.

Traders divided 
Pig traders are divided about whether or not to increase the DCA Exchange Price 2.0. The doubt is fueled by the uncertainty whether slaughterhouses want to change their pricing. There is also a group that believes that the listing is ripe for a step up. Based on the statements, the quotation for slaughtered pigs remains unchanged at €2,25 per kilo. The price of live pigs is also not moving and is €1,80 per kilo.  

Click here for an explanation of the listing.