Analysis Pigs
Slaughter weight continues to rise, price pressure is easing somewhat
As cold as January has been in the Netherlands so far, it is just as chilly on the pig market. After other countries took the initiative, German pork prices also fell this week. But despite the fact that there is no prospect of declining slaughter weights yet, the pressure on pork prices appears to be easing.
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The doomsday scenario that hung over the market at the beginning of this month has come true. Dutch slaughterhouses have reduced the price by 10 cents over two weeks. The German market was able to remain stable last week, but followed the Dutch market this week and also fell by 10 cents. The conclusion can therefore be drawn that the quotations in Germany are currently following, where in the past they often set the tone on the European pig market.
Heavy pigs
The loss of slaughter days around the holidays is still noticeable. The pig supply is still ample in mid-January. With 312.188 pigs, quite high numbers were slaughtered last week. The decreased quotations probably make it more attractive to slaughter for the cold store. The slaughter weights increased further last week to no less than 102.90 kilos. This indicates that supply pressure will not diminish for the time being, as is also indicated by traders in the market.
The market will probably need a few more weeks to reach equilibrium. However, there is good hope that the pressure on pig prices will decrease next week, now that there has already been a fairly strong correction. The reductions at Dutch slaughterhouses showed a weakening pace this week. In addition, historically speaking, the slaughter weight often drops again from week three and that is probably also the case this year.
Few impulses
For the time being, there are few impulses for better sentiment from the meat market. Slaughterhouses describe sales as weak for the time being, as is usually usual in January. Exports outside Europe are also and remain lukewarm. At the same time, pork stocks in Europe are not excessively large, which offers indications of an improving market later this year, although the first signals of this are certainly not yet in sight.
DCA Benchmark Price - Pigs
Based on the statements, the DCA Exchange Price 2.0 for slaughtered pigs decreases by €0,04 to €1,94 and for live pigs by €0,02 to €1,54.
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