Pig market as wild as a runaway bull

The German pork price (VEZG) rises by €0,07 to an unprecedented level of €2,50 per kilo. This makes the price increase even greater than in the previous weeks when 5 or 3 cents were added to the price. Moreover, the price increase was not immediately expected. The barbecue weather seems to be over for the time being, while the tamer summer season - in terms of meat sales - is approaching. 

It was not yet known on Wednesday afternoon whether the major German slaughterhouses would follow the move. This has been done repeatedly in recent weeks in order not to jeopardize the supply of pigs for slaughter. It is known that slaughterhouses have the greatest difficulty in keeping up with price increases with sales on the meat market. These are currently showing a leveling off trend, as shown by DCA's parts prices.

Extremely tight supply
However, the extremely tight supply makes the market very explosive. The German slaughter figure fell below 700.000 pigs last week, which is extremely low for a full slaughter week. The overcapacity is enormous. The slaughter figure is 10% below the level of last year, when the decline was already clearly visible.

The higher German pig price will undoubtedly give the Dutch market another boost. The movement is not yet reflected in the slaughterhouse quotations, but that will be different next week. Only Compaxo gained a penny today to be on par with Van Rooi, Westfort and Pali in the call price. This means that it comes down to the allowances trying to outdo each other for the pigs. The latter sounds a bit heavy, but it is the reality in the current wild market.