Pig market suddenly squeaks and creaks something

Apparently quite easily, the German pig price (VEZG quotation) manages to hold on to the record high price level of €2,50 per kilo. Prices also remained in place in the Netherlands, as in many other European countries.

The tight supply in recent weeks is clearly reflected in the slaughter figures. The German slaughter figure remains below 700.000, while in the Netherlands even fewer than 250.000 pigs were slaughtered in the past week. These are numbers that are normally only achieved in broken weeks. The low point seems to have been reached, because in recent years the number of slaughters increased again from week 30 onwards. Various traders indicate that supply is perceived to be increasing again, although there is still no oversupply. 

Jumbo complains
It was striking that Jumbo 'complained' out loud this week about the high pork prices. When publishing the half-year figures, the CEO of the supermarket chain explicitly stated that sugar and pork are very expensive to purchase. Apparently, not only the buyers themselves are aware of this, but it is even noticed in the boardroom. While products such as butter, cheese and bread have already fallen significantly in value, this certainly does not apply to pork. This makes hams and tenderloins a laggard to food inflation.  

A threat to the pork market may be that beef prices are currently losing ground. To a certain extent, both types of meat are interchangeable. If the price difference becomes smaller, this could have a negative impact on pork sales. Furthermore, the market lacks the momentum of barbecue demand. The Dutch summer weather of recent weeks does not necessarily invite you to light the grill. Moreover, the demand will not be forthcoming for a while, given the rain that is coming next week.

mood making
Slaughterhouses are increasingly negative about the market, but they will also have to realize that lackluster demand suits this time of year. When the holiday season is over, demand recovery is on the horizon. Nevertheless, there is some controversy here and there and this certainly does not leave the market cold. Some traders opt for a reduction because they are not sure whether the price can hold up. Moreover, the Stock Exchange price is on the tight side, or so the idea is. 

However, the DCA Stock Price continues to maintain its stable line. The quotation for the slaughtered pigs remains unchanged at €2,41 per kilo. Live pigs are trading flat at €1,91 per kilo.

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