News Pigs
Counterpressure from slaughterhouses on the rise in pig prices
The German pig price (VEZG) does not rise any further this week. Dutch slaughterhouses do increase quotations, but do so with the brakes on.
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Things could go one of two ways on the German pig market this week. Either the VEZG rating would continue to rise, or the rating would level off due to counter pressure from slaughterhouses. The latter is the case, as the quotation remains stuck at €2,38 per kilo. Although this is a record, market insiders sometimes expected and hoped for more.
Resistance
The resistance of slaughterhouses is quite strong, also in the Netherlands. Based on developments in Germany, the DCA Scholarship Award Friday by €0,05 to €2,38 per kilo, but slaughterhouses are taking it easier with an increase of €0,03. Vion initiated this on Monday and the other players are willingly following the market leader. The meat sales seen across the full width of the carcass do not allow such a large increase, the comment reads.
The weak export to the Asian market in particular makes it difficult to achieve a good square value valuation. In light of the global market, they say they are losing out compared to the Brazilians and Americans, and that is indeed the case.
Based on the leveling off German pig price, stabilization is also likely on the Dutch market and in Belgium in the coming week.