Analysis Pigs
Pig supply dries up quickly due to high temperatures
The continued sunny and warm temperatures in Northwest Europe are making the pig market lively. After a short break, the German pig price rose again this week. This also puts the signals on green for a further increase in the Netherlands. Dutch slaughterhouses also have something to make up for.
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It was not a bolt from the blue that the German pork price (VEZG) rose further earlier this week, but at the same time it was also a surprise. In the previous week, the quotation leveled off due to strong counter pressure from slaughterhouses. The tight pig supply means that German slaughterhouses are currently price takers and have little choice but to keep tight prices to keep the slaughter lines filled.
Dutch slaughterhouses take their turn
Dutch pig prices are in line due to the German increase. Not least the slaughterhouse quotations, which have been lagging behind the German market and the DCA Stock Exchange price for a few weeks now. Only Westfort closed the gap this week, because sales of meat parts were easier than estimated. Traders increasingly indicate that they are looking to German slaughterhouses if that means more money.
Grumbling
There is a lot of grumbling from the slaughterhouse sector about the rising market trends, which in their view are not in line with the square value of the carcass. Rising prices are a problem, especially on the world market, although the difference with the Brazilians and the Americans was already large. Arguments are put forward that meat consumption on the internal market will soon decline when the summer holidays start and many consumers resort to the more southern parts of Europe. However, this is not yet the case on a large scale.
Strong barbecue demand
Due to the persistent warm and dry weather, the demand for barbecue parts is high. This drives up the prices of attorneys, for example. To meet demand, full slaughter lines are desirable. The demand for pigs is therefore high. Now that the broken slaughter weeks are over, the tight supply is becoming even more exposed. Especially now that there is a slowdown in growth and pigs are sometimes being held captive.
Higher DCA Scholarship Price
Based on the statements, the DCA Exchange Price 2.0 for slaughtered pigs will increase this week by €0,04 to €2,34 per kilo. The price of live pigs also increases by €0,04 to €1,86 per kilo. In this way, traders appear to be giving slaughterhouses the opportunity to catch up with the lagging slaughterhouse quotations next week.
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